Cheltenham Minster Exchange project pushed back one year with a hefty £700,000 cost to taxpayers

A development around Cheltenham Minster that has already been beset by delays and millions in extra costs has been pushed back by a full year at an additional cost of £700,000. The Minster Exchange (MX) project to build an area for cyber technology businesses in Cheltenham town centre now has a total pricetag of almost £8.4 million.

Initial estimates for the development placed the cost for the “MX” at £5.2 million, but after the Covid pandemic, inflation and increased supply chain costs, Cheltenham Borough Council was forced in December to plough a further £2.5 million into the project to keep it afloat. Despite a total buy-in of around £3.2 million, the council is confident it will make its money back and then some.

The Minster Exchange, which was initially due to complete in spring of this year, is set to be a central location for cyber businesses to set up shop in Cheltenham, when it eventually opens. The new end date for construction on the project, which has come under some public criticism, is now some time in “early” 2024.

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A spokesperson for the borough council said: “Cheltenham Borough Council has announced an additional £700K to secure the completion of the Minster Exchange (MX). This is following challenges the developer, Workshop Cheltenham Ltd, have experienced with inflation, supply chain and with previous contractors.

“This intervention and investment from the council will be crucial in supporting the ongoing expansion of the cyber eco system. It will also ensure Cheltenham’s continued success as part of a wider regeneration plan to improve the town centre, supporting economic growth and employment opportunities.”

The spokesperson continued: “Examples include significant refurbishment of the Wilson Art Gallery and Museum, the work to redevelop Minster Gardens and improvements to popular town centre spot, Clarence Fountain. The recent investment in 232- 242 High Street, 254 High Street, 8 St George’s Place will bring further regeneration in due course.

“The project will also provide an event space and a future home for Cheltenham Festivals to deliver a programme of events throughout the year and a platform to support its education and outreach initiatives. An award winning town, Cheltenham has welcomed many big brands to the centre including the Tivoli Cinema, Brewdog, Taco Bell and Flight Club, and with its Purple Flag accreditation, the town stands out as a safe and welcoming destination.

“Despite changes to the financial arrangements of this development, it will still provide an expected internal rate of return of between 4 per cent and 5 per cent benefit to the taxpayer, helping to support other local services. MX will have a 25-year return on investment, which is common in the construction industry.

“Also with a partnership with national cyber eco system specialist Plexal, the positive opportunity for this scheme is further strengthened despite the delayed opening.”

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