Businesses claim ‘downturn in trade’ caused by Clay Cross regeneration scheme
Parts of the £25m Clay Cross project are currently on hold
Council chiefs hope to complete the pedestrianisation of a Derbyshire town’s shopping area by the end of June as part of a multi-million pound regeneration scheme while struggling businesses claim the delayed and disruptive works have caused a ‘downturn in trade’.
NE Derbyshire District Council is overseeing an overall Government-funded £24.1m Clay Cross Town Deal regeneration scheme for the town including the project to pedestrianise a stretch of Market Street which started six months ago and hopes to increase footfall and boost business.
However, construction company Inside Limited ceased work in February on the wider scheme’s unfinished works for the new Bailey Square and Market Street projects after citing ‘ongoing contractual and financial disputes’.
But while the council secured a new contractor for Market Street within a week and recently announced an adjudicator had found no additional payment is due to Inside Limited and that the company’s attempt to terminate the contract had been ‘invalid’, some businesses say ongoing delays have left them struggling.
David Jones, of Clay Cross Do It Yourself, on Market Street, said: “Obviously sales are down by plus 22 per cent and people are not able to negotiate the whole set-up and not being able to walk through and see us.
“They think it’s closed. The council said it’s going to be done by the end of the month. A seating area nearby that looks like it might be a big garden seems to have been prioritised and there have been as many as 12 men working on that while we have had four on Market Street.”
He added: “I think I hold the council responsible and the very fact that whatever happens there is no grounds for compensation. We have just got to stand it. It’s cost me thousands of pounds.”
Mr Jones said raised boxes have been dropped off at the site and one shopper fell over and another business had to temporarily close because a hole had emerged in front of an entrance, and another shopper in a mobility scooter ended up with a wheel four inches off the ground.
He added council representatives do visit the site to talk to businesses about concerns and they are ‘very nice’ but he feels the council should have progressed the works which started as long ago as January.
Mr Jones said the new housing developments in the area meant that more customers had started visiting Clay Cross but the works and connected partial road closures and temporary traffic lights have stopped people coming.
He is worried traffic which is re-routing onto nearby Broadleys due to temporary traffic lights and a partial road closure on High Street will soon pose further problems because Broadleys is due to temporarily close from June 15 which might affect businesses in that area as well as the movement of any emergency vehicles.
Inside Limited claims the adjudicator made other important findings in relation to delays, extensions and valuation issues which the council has not released including the possession of the Section 6 Market Street works which it says was delayed with the adjudicator awarding an extension of time to April 27.
The council conceded the adjudicator identified limited delays on some parts of the project but it says no additional payment was necessary because the contractor did not provide evidence to support claims for loss and expense.
Mr Jones, who fears further delays, added: “It seems to be a disagreement between the contractor and the council and who is to know who is to blame.
“The council wants someone to finish all the work off but who is is going to come in and finish it?
“I do not think it will be successful when it’s all done anyway. I don’t think people will move down towards the Bailey Square area. The council thinks it’s moving the town centre but I don’t think it will work that way.”
Nicola Piper, of the Bon Appetit, complained the Market Street works have been very slow and that people have been avoiding Clay Cross and she has seen ‘a lot of downturn’ in business.
She said: “It’s going very slow. I think everyone’s avoiding Clay Cross. We have seen a lot of downturn in trade. It will be alright in the end but it’s not getting there yet.
“They are going to close Broadleys so it’s going to get worse. Normally it’s packed but who wants to come to Clay Cross and look at all this.
“It has to be the council’s responsibility. Since February, we have heard it will be finished in a week, and we must have heard that ten times. I don’t think it will improve things when it’s finished and I think they should have left it. People are avoiding Clay Cross and they will go elsewhere.”
Rizgar Abdullai, of Sahand Barber, said it feels like ‘we are working in a cage’ with all the fencing around the Market Street works and his boss Miran Mamagha has had to send staff home because there is not enough work and he is considering removing one of his barber’s chairs due to the downturn in customers.
Mr Abdullai said: “We have lost trade. I think business is going down and these people are not telling the truth. In January this road was closed and they are supposed to be finished by now.
“There is a lady who comes from the council and when we try to tell her something it feels like she is ignoring us. We ask them when is it going to be finished and they say they don’t know.
“Everyone wants to know when it is going to be finished. That is the main thing. In the meantime, the owner is struggling to pay staff and he is having to send them home because there is not enough work.”
Inside Limited stated it had worked on the regeneration project for a prolonged period under extremely challenging circumstances and continued attempting to deliver the scheme despite ongoing issues relating to possession, utilities, design development and changing project requirements.
It added that it raised concerns regarding claims over inconsistent instructions, changing positions and conflicting information issued by the council’s team which the firm claims created significant uncertainty around programme, coordination and delivery of the works.
The company added that the financial pressures arising from this project placed the company under severe strain and ultimately contributed to the company ceasing trading at the site.
NE Derbyshire District Council which says it has ensured businesses have been able to continue operating during works on Market Street has offered reassurances the project is due to be completed despite various challenges.
The council says it has been aware of potential disruptions regarding necessary traffic control and the difficult economic climate and it says it has tried to minimise issues by ensuring access to the businesses.
Despite Inside Limited withdrawing from the Bailey’s Square and Market Street projects the council says it secured another contractor within a week for Market Street and it is working to procure a new contractor to complete Bailey’s Square.
The Market Street project to pedestrianise an area for about a dozen shops and businesses is anticipated to bring enormous benefits for traders with greater footfall and a natural link to the nearby Bailey’s Square development, according to the council.
The council says there have been engagement opportunities and an open line of communication with businesses at Market Street to address concerns and to explain the council’s position as it oversees the delivery of the overall regeneration scheme.
But businesses have previously raised concerns after claiming erected construction barriers had reduced passing footfall along with the delayed town centre pedestrianisation works.
Circumstances for residents and businesses have been further compounded by diverted traffic linked to the Market Street project causing congestion.
A council spokesperson said: “We recognise that projects of this scale can bring short‑term challenges, particularly for businesses in and around Market Street and we appreciate the patience and resilience shown by local businesses during this time.
“Maintaining access has been a priority throughout the works, with clear pedestrian routes in place to ensure all businesses remain open and accessible. We have also continued to actively promote this through on-site signage, our digital channels and the Council’s NEWS magazine, encouraging residents and visitors to support local traders and shop local.
“Council officers have been regularly visiting businesses directly affected by the works to provide updates, listen to concerns and offer reassurance. That direct engagement remains ongoing.
“In relation to the current Market Street works, these are progressing well and we are working to complete this phase as quickly as possible. Subject to weather delays and unforeseen events which may impact on the resurfacing work, it is envisaged that the Market Street pedestrianisation will be completed by the end of June. Installation of street furniture will follow this.
“Earlier in the year, the situation was impacted by the previous contractor leaving site. The council acted quickly to secure the area and put interim arrangements in place to ensure works could continue, helping to minimise disruption and keep the project moving forward.
“These improvements form part of a wider regeneration programme for Clay Cross, representing a significant long-term investment in the town. Once complete, the scheme will create a more attractive, accessible and welcoming town centre, supporting local businesses and helping to increase footfall over time.
“We remain focused on completing the works and delivering the long-term benefits for businesses, residents and visitors to Clay Cross.”
The Labour-controlled council originally announced the appointment of Inside Limited for the Town Centre Regeneration project in March, 2024, as part of the overall Clay Cross Town Deal regeneration scheme envisaged by fellow representatives and interested parties on the Clay Cross Town Deal Board.
Work on the overall Clay Cross Town Deal scheme features four main parts including plans for the town centre location – called Bailey’s Square – which still 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 feature a multi-function open space, greenery, a refurbished heritage building, and flexible business units for independent enterprises and street food outlets linked to revamped Market Street, Bridge Street and Smithy Street but some changes may now be necessary.
The four parts of the Clay Cross Town Deal include plans for the 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 plans to re-purpose an historic building with food, drink and leisure opportunities.
The opening of a new Clay Cross Active leisure centre as part of the overall Town Deal regeneration plans was also delayed until last summer after subsidiaries of the original contractor ISG fell into administration before a new contractor Universal Civils and Build stepped in to complete this project by June, last year.
The council stated shops on Broadleys will also remain open and pedestrian access will be put in place on the road during its temporary closure between June 15 and June 26 to traffic so a permanent crossing can be put in place.