£24m Clay Cross regeneration project more likely to go over budget after work stops
Contractor Inside Limited ceased works in February citing ‘contractual and financial disputes’.
Last updated 23rd Jun 2026
The Clay Cross Town Deal Board overseeing a Government-funded £24.1m regeneration scheme has revealed it is facing a high risk of increased budget costs and it is no longer on target to complete the works within an original deadline after a contractor stopped operations on its town square project.
Contractor Inside Limited ceased works in February at the Bailey’s Square project, off Broadleys and the nearby Market Street project, citing ‘contractual and financial disputes’.
But NE Derbyshire District Council which is managing the overall Town Deal scheme announced the company’s bid to terminate the contract was ‘invalid’ and the council’s subsequent termination was legally ‘valid’.
The Clay Cross Town Deal Board, which includes council representatives, met on June 19, where Economic Development and Programmes Manager Tris Burdett revealed the board is ‘not on target to complete the works as planned’, but she added the re-procurement process to secure a new contractor for Bailey’s Square is underway.
Ms Burdett said: “We have legally terminated the contract and now that process is complete the re-procurement exercise can now begin and that will then tease out delivery timescales.”
A Clay Cross Town Deal Board report confirmed the Town Deal programme originally scheduled to be financially completed by March 2026 can be extended to March 2028.
The report also recognised programme slippage has delayed completion which has affected delivery timescales, and that there is a high risk the current budget is not adequate to complete the project and new designs will be required to finish key elements.
But Ms Burdett said there are promising talks with the East Midlands Combined County Authority regarding the board’s request for an additional £1m of funding.
She added that works to complete the pedestrianisation of a stretch of Market Street, which started in January with concerns about the impact on trade for businesses, is ongoing with a newly-appointed contractor after the council announced these works are hoped to be completed by the end of June.
Council Leader, Cllr Nigel Barker, told the meeting: “Regarding Market Street and the work that has gone on there. I think we should just mention it has been disruptive and there have been issues.
“It will be great when it’s finished, but it’s been disruptive and we should acknowledge that in this meeting. We cannot make an omelette without breaking eggs but it will be worth it in the end.”
Ms Burdett also told the meeting that Town Deal representatives have been making weekly visits to discuss issues with concerned businesses on Market Street, some of whom have complained about a downturn in trade during the revamp.
Work has also got underway on a Broadleys project, including a new crossing, after a temporary road closure was put in place between June 15 and 26 while pedestrian access has been maintained for businesses.
Ms Burdett said: “Works are ongoing to complete Market Street and we have started work on Broadleys to create that entrance there and we have been working hard with businesses on Broadleys and they have maintained access, and they all seem happy.”
Derbyshire County Council’s decision to no longer relocate its library to a new extension at the Derbyshire Adult and Community Education Service building, on Market Street, off Bailey’s Square, despite previous approval to do so in July, 2024, under the former Conservative-led administration, is also being reassessed by the Town Deal Board.
Ms Burdett also explained Derbyshire County Council has not yet made a decision on the consultation for an Adult Education Service potentially linked to a learning and skills hub in the revamped Clock Tower building planned for Bailey’s Square.
But Ms Burdett told the meeting how the new Clay Cross Active leisure centre which replaced the former Sharley Park Leisure Centre under the Town Deal scheme, has proved to be ‘successful’ since it opened under the Town Deal programme in June, 2025.
She said: “With regards to Clay Cross Active, it has been open a year and take-up has been great and it’s doing incredibly well.”
Property and Estates Manager Mohammed Mahroof told the meeting that interest from retailers in the delayed Bailey’s Square scheme has been maintained despite the loss of the contractor and the search for a new developer to complete this project.
He said: “We have sent out updates to say there will be a delay and the feedback has been good because one of the tenants we met who wanted to be in quicker than available are quite positive that we are doing it as quickly as we possibly can.
“We are all becoming very good friends because it’s been going on for so long and we feel there should be these conversations on a regular basis.”
Mr Mahroof added that to attract so much interest in Clay Cross shows that there is an awarenesses that the scheme will be good for business despite the possible impact from the country’s economic circumstances and that ‘retail is not very strong’.
Following a question from Cllr Alex Dale concerning possible risks and mitigation efforts surrounding Bailey’s Square, Mr Mahroof said there is always a risk with new developments and with what is happening in the world and even though he conceded some tenants may change, Clay Cross is an untapped market and retailers may see the benefit of relocating to the area.
Board member, Clay Cross Parish Cllr Brian Wright, also raised concerns about a lack of complete walking and cycling links and Town Deal Chairperson Lee Barnes said this matter could be considered as part of the council’s wider Local Plan for the region not just for Clay Cross.
The overall Clay Cross Town Deal scheme features plans for the main town centre location – Bailey’s Square – which aims to be part of a redeveloped area supporting a day and night time economy for residents and businesses.
Plans for the new town square also feature a multi-function open space, greenery, a refurbished heritage building, and flexible business units for independent enterprises and street food outlets linked to the revamped Market Street, Bridge Street and Smithy Street projects but some changes may now be necessary.
The Clay Cross Town Deal plans hope to provide a new revitalised town square, as well as food, beverage and leisure units along the route from Broadleys to the town square, a Derbyshire Adult Education Centre called the Clocktower, and a re-purposed historic building with food, drink and leisure opportunities.
NE Derbyshire District Council has stated that it remains focused on completing the works with the Town Deal Board and delivering long-term benefits for businesses, residents and visitors to Clay Cross.