‘Proud’ councillor defends Northampton Market Square revamp despite latest £1m extra cost – taking total overspend to £5.1m
The councillor who led Northampton’s Market Square redevelopment says he remains “proud” of the project despite news this week that taxpayers are footing a further £1 million bill to settle a dispute with the contractor.
West Northamptonshire Council’s Cabinet is being asked to approve the extra payment to Stepnell Ltd, the firm that carried out the revamp, following a long-running disagreement over final costs.
If approved, the deal will bring the total spend on the scheme to £13.5 million – up from the original £8.4 million budget announced in 2021.
The project, delivered under the previous Conservative administration, was overseen by current Tory leader Councillor Daniel Lister during his time as cabinet member for town centre regeneration.
Responding to the latest overspend, Cllr Lister said: “The Market Square is now a high-quality space bringing life back into the town centre, and I am proud to have led it through its most challenging stages with a first-class regeneration team whose work deserves real credit. Every major project brings lessons, but the result speaks for itself and is already delivering clear benefits for Northampton.”
As reported by this newspaper on Monday, council officers have recommended approving a confidential settlement agreement with Stepnell Ltd after the company claimed about £2.3 million above its contract price, citing delays and extra work caused by archaeological finds, utility diversions and sewer repairs.
The council disputes parts of that claim but says the proposed settlement “demonstrates the best final account position that WNC can achieve whilst minimising the significant exposure to further cost from continued dispute at adjudications or court proceedings.”
If signed off, the money – drawn from the council’s General Fund, which is funded largely by council tax, business rates and government grants – will cover the settlement and final snagging work needed to close the contract.
In April 2024, it was revealed by this newspaper that the redevelopment had reached a cost of £12.4 million. The initial project cost was £8.4 million, fully funded by the Government’s Towns Fund. This figure later rose to £10 million during construction and then £12.4 million. WNC attributed the increase to “construction costs being significantly higher because of inflation and the lasting effects of the pandemic.”
The Market Square project started in February 2023 and was completed by the end of November 2024 - with the completion date four months later than planned.
The redevelopment introduced new paving, water features, seating, landscaping, and 18 fixed market stalls with power and water connections, alongside pop-up stalls and a dedicated events space.
This week, Reform Councillor James Petter, cabinet member for local economy, culture and leisure, said: “We know this wasn’t the outcome anyone wanted. We’re taking responsibility and learning from it. Our approach to construction contracts, risk and procurement needs tightening, and we’re already reviewing those processes to make sure this doesn’t happen again.
“That said, the new Market Square is already transforming the heart of Northampton. It’s busy, it’s vibrant, and it’s drawing people back into the town. Events are bringing thousands of visitors, boosting trade and breathing life into local businesses.
“West Northamptonshire taxpayers are seeing a return on their investment, and private confidence is up because of it. Settling this now lets us draw a line under a complicated build and focus fully on the benefits the space is already delivering for our community.”
Chronicle readers voiced their opinions earlier this week.
Julie Liburd said: “I do think the decline of the market is also a symptom of overall retail decline, so not all down to council blame, but come on – a dispute with the contractor? It does make you question the whole ability of procurement. Shame we’re having to foot the bill for poor management and control again.”
Stuart John said: “Let them take WNC to court – they signed a contract! Daniel Lister should be held accountable and for all the losses as well.”
Clare Goodwin added: “What a sad sight. That market square used to be so full you’d have a job browsing the stalls! Now look! Not enough traders to fill a single corner of the square. How many businesses folded due to the months of no market trading? As a market trader myself, I know how tough trading is – take away your place to trade and there goes your livelihood.”
Sue Goodall said: “What planet are Reform on! How can they say, ‘the new Market Square is already transforming the heart of Northampton’? We’ve ended up with hardly any market and no one from Northampton wants to go to town because there’s nothing there except Turkish barbers and coffee shops! We voted for Reform but they’re promoting the old Tory policies.”
Independent councillor Julie Davenport said: “Dan Lister and his team have worked tirelessly to deliver this result. I hope the town centre will flourish. New larger stores are needed to attract people to town. However, busy parents and young people find it so much easier to sit at home and order online. It needs to become a fun day out for families with activities for children and somewhere to relax for parents.
“I have never known a project be on budget with the council. Delapré Abbey, Angel Square, and the North West Relief Road all came in way over budget.
“Do contractors underquote to get the work? The North West Relief Road was quoted at £20 million at first, then went up another £20 million and has nearly tripled from the first quote. I remember being told in a meeting that we’d already spent a huge amount on work started, so either way we lose money. We are at the mercy of contractors, in my opinion, and contracts need to stipulate costs – however, I’m not in procurement so will leave that to them.”
Cabinet members are due to discuss the settlement report on Tuesday, November 11.