Increasing costs raise doubts over best way to deliver The Vine community and cultural hub in Peterborough

Contingency plans are being drawn up to ensure a major Towns Fund-backed project in Peterborough goes ahead despite fears of a funding shortfall.

Members of the Towns Fund board are considering a piecemeal approach to the creation of The Vine after rising costs triggered doubts that an expected £12.7 million of Government cash would be enough to complete the project.

Original plans for The Vine, a proposed culture and community hub, envisaged it taking up the entire three storey, 89,000 square feet, former TK Maxx store in Bridge Street with a new city centre library, space for start-ups businesses in digital, creative and design sectors, meeting rooms and rehearsal studios, a learning resource centre and gallery space for artists.

But according to just released minutes of a Towns Fund board meeting in September, if additional funding to the £12.7 million expected to be approved by the Government cannot be found within 18 months, the project – the largest of the eight Towns Fund projects – will have to be delivered in phases.

The size of the funding gap has not been released.

The minutes state: “With cost increases, this has a funding gap, where currently the costs exceed the funds available.

"However, if additional funds can be secured from other sources, the project and its outputs can be delivered at this location (TKMaxx).

But it warns: “Should additional funding not be secured in a timely manner, contingency plans are also under development."

The minutes outline two contingency plans.

The first would initially involve using just the ground floor of the TK Maxx building with the fitting out and use of the upper floors becoming a ‘medium to long term ambition’ subject to additional funding availability.

The second would be delivered on the ground floor of TK Maxx with proposed education space, commercial and employment workspace moving to the first floor at the Central Library, in Broadway.

The board has agreed that the business case for The Vine should be submitted to the Department of Levelling Up, Housing Communities by the end of next month. Once officials have approved the plans, the aim is to begin the search for additional funds.