Nuneaton’s Grayson Place town centre regeneration scheme requires an additional £800,000 to address problems identified in the development, according to council documentation. Initial details regarding the scheme difficulties were presented during a closed session of the cabinet meeting held at the Town Hall on April 22, with residents and media barred from attending. The specifics of the required modifications have now been published as part of the public agenda for a full council gathering. The documentation outlines why an extra £812,000 is necessary, which includes converting what was intended to be a food court into a food hall.
The council was unable to find a dependable food court operator willing to commit to the glass-fronted structure within the Grayson Place development. Consequently, the planned food court comprising multiple food concessions will instead become a food hall. This alteration necessitates building modifications, specifically a second staircase and lift, expected to cost £654,000.
A report presented to the full council states that the original design specified a food court requiring limited internal infrastructure since food would primarily be reheated or assembled rather than prepared and cooked on the premises. Despite extensive negotiations with national and regional operators, no suitable food court provider could be secured. With this situation in mind, operators suited to a food hall environment were approached. The proposal involves dividing the food hall into two separate units to accommodate national food chain businesses. The March 2026 Regeneration Update to Cabinet informed members that additional building works were required to create a food hall environment, particularly concerning appropriate drainage, ventilation and fire safety systems. This is because food will now be prepared and cooked on site, necessitating an upgraded drainage design, including new foul drains and grease traps. The modifications to the food hall provision could generate higher than expected annual rental income, though negotiations are still in progress. Works undertaken for these amendments have identified further requirements, including the necessity for a second staircase and passenger lift, creating a cost pressure of £654,000 which includes a contingency amount.
Additional funding is also required for the proposed car park on the site. The large grey building, originally intended as a cinema, will house Padel tennis facilities including a championship court and additional courts on an area previously allocated for parking. To compensate for the reduced parking capacity and maintain the income needed to service the project’s borrowing costs, extending the car park provision has become essential. This extension involves constructing a new retaining wall, kerbs and ramp access. Furthermore, positioning a court within the public realm necessitates a second attenuation tank. The total costs for these works reduce the cost pressure to £742,000, including a contingency amount.
Further funding is required for the North Warwickshire and South Leicestershire College digital innovation centre and restaurant on the site. The documentation reveals that during previous value engineering exercises, costs for completing the food-related elements of the college building were eliminated. This means the area lacks electrical fittings, ceilings, drainage and mechanical works. The specification for these works has now been costed, resulting in a cost pressure of £622,000. While savings and mitigations achieved through careful management of project contingency have helped reduce costs, an overspend of £812,000 remains.
As a consequence, the proposed £350,000 renovation of the former India Red pub will now be financed through the Corporate Capital Property Programme rather than the Grayson Place project. A total of £247,000 from the £4,028,173 UK Shared Prosperity Fund allocated by the previous administration has been provided to contribute towards some costs. This leaves a funding shortfall of £215,000, and it is proposed that the currently unallocated remaining Pathfinder funding of £280,000 be redirected to the Grayson Place project, resulting in a project surplus of £65,000. This surplus will remain within the project budget as additional contingency to cover any further costs that may emerge.
The funding changes require approval from the full council, which will convene at the Town Hall tomorrow evening.