Newark and Sherwood District Council approve additional £1,020,600 spend on Castle Gateway project as build costs rise

Soaring construction costs and the perils of working on a historic site have increased the cost of a major redevelopment project by 18% — meaning more than £1m extra is needed.

An additional £1,020,600 has been approved for spending on plans to re-imagine Newark’s Castle Gatehouse in a bid to cover the funding shortfall for the project.

The previously agreed cost of the scheme — which will see the Romanesque gatehouse re-established as an entrance to the grade-one listed landmark, and enhance its tourist appeal through the creation of gallery spaces, a viewing deck, space for learning and community group meetings, and landscaping — was £5,679,702 in November 2024, but it has since risen to £7,010,302.

The additional funding is to come from Newark and Sherwood District Council’s change management reserve, cabinet members agreed at a meeting on Tuesday (February 18) amid a review of funding for a number of projects.

In a statement after the meeting, leader Paul Peacock, said: “This project is more than ten years in the making and we are committed to delivering it. We are custodians of the castle; it is an iconic entrance to Newark, an important destination and a brilliant free attraction for our community, visitors and schools. To not protect it for future generations would be irresponsible.

“There are lots of challenges, such as the castle being a scheduled ancient monument. A huge piece of heritage and conservation work needs to be undertaken to complete the project in the right way, and, as with everything, prices have increased and continue to do so.

“The project has already secured a large amount of funding from other sources, so we need to make sure this funding commitment for our area is not lost. Now we have pledged our continued commitment to this project, we look forward to preserving this important landmark and making it accessible for everyone for years to come.”

The increase means the council will pay for 30% of the project, with the remainder from previously agreed Newark Towns Fund and National Lottery Heritage Fund money.

Council documents explained a commitment for the funding was needed now to “enable the project to progress in line with the funders’ timescales” alternative funding streams would continue to be sought to reduce the council’s expenditure.

It also highlighted the “volatility of the construction market” and “complexities of excavating on a site which is designated a scheduled monument, and which has potential archaeology dating back 900 years”.

Officers told members the tenders for the project were coming in “well over budget”, but that the “benefit to cost ratio is still acceptable”.

A cost reduction exercise had been carried out which identified savings of £250,000, but the project remained over budget.

Increases had been seen in particular relating to the build cost, and “fees, surveys, archaeology, other” sections of the budget, with increases of £1,232,716 and £209,763 respectively.

At the meeting, Mr Peacock spoke of a recent visit to the castle, where he found the current facilities “prohibitive” to actually looking around the castle, and suggested the new scheme would mean the public visit and enjoy the historic site more.

He added: “It’s opening up a fantastic facility and a story of Newark, which people haven’t been able to see before.”

The additional funding was agreed unanimously.