University committed to Citadels project despite £8 million shortfall

The university had originally pledged to give £23.5million to the £77million Borderlands Partnership project but has since requested to pay £15.5million.

The request for the additional £8million funding is now with the Ministry for Housing, Communities and Local Government and a decision is expected in the next few months.

The chancellor, Rachel Reeves, has put a stop to some large scale, industrial projects due to what she claims is the ‘dire state’ of the public finances left by the Tories.

Chancellor Rachel Reeves (Image: PA)

The citadels proposal is one of the major projects within the broader regeneration of the city centre and Carlisle MP Julie Minns has requested ‘urgent’ meetings with both the university vice-chancellor and the Borderlands director to discuss the funding shortfall.

The project is set to ‘transform’ the city centre, with a brand new campus being built in and amongst the historic citadels.

Properties on English Street and Victoria Viaduct have been purchased and vacated ahead of the build which was given planning permission in August 2022.

View from English Street, Carlisle over to site for proposed university campus projec (Image: Jonathan Becker/University of Cumbria)

In a report sent to the Borderlands Partnership, the university said it is suffering with “intense inflationary pressures, increasing employer pension contributions and increased utility costs” which have all contributed to the request.

The university cited that tuition fees have remained at £9,250 since 2017 and haven’t increased with inflation, representing a ‘significant’ reduction in value.

“The university has been able to manage the profound challenges from this in recent years by growing volumes of students and through business efficiency,” said the report.

“Inflation has risen markedly since 2021 and is remaining persistent, and we expect above inflation rises in pension and utility costs into 2024.

“As volume growth is lower than the resulting cost increases across staffing and other aspects, including particularly utilities, our medium-term financial forecasts now show lower levels of cash generation with a further focus on staffing costs and levels required."

The request for new funding was made in May – the same month that Sir Robert McAlpine (SRM) pulled out as contractors for the project - although there is no suggestion the two actions are linked.

The Citadels at night (Image: University of Cumbria)

SRM, which had been working with the university since 2022, said that the company recently won tenders for two large new infrastructure projects, and had therefore 'decided to focus on those'.

The university have said that they are going through a tender process for a new contractor and are aiming to start work on site in early 2025.

A spokesperson for University of Cumbria said: “We, along with all partners involved, remain fully committed to delivering the new Citadels campus in Carlisle.

“At its May meeting, the Borderlands Partnership Board agreed to support a request for additional funding for the project.

“The full detail of the request has now been appraised, and a formal change request will shortly be sent to the Ministry for Housing, Communities and Local Government.

“In the meantime, work has continued behind the scenes as we prepare to start building our new campus at The Citadels site in Carlisle city centre and we are currently going through a tender process to select a new contractor with a view to building work starting on site in early 2025.

“It is an exciting time for the university and the wider city, as we move towards realising our vision and as we move into the next phase of delivery for this transformational project.”

Carlisle’s new Labour MP, Julie Minns has said that ‘everything must be done’ to ensure the project goes ahead and blamed former prime minister, Liz Truss, for ‘driving inflation'.

Julie Minns (Image: Supplied)

“This is a key project for the city and the university, and everything must be done to ensure it goes ahead,” said Ms Minns.

READ MORE: Everything you need to know about University of Cumbria's Citadel regeneration

“We cannot escape the fact that the disastrous mini budget by the Liz Truss government was responsible for driving inflation through the roof and sending the capital costs of projects spiralling.

“I have today requested seeking urgent meetings with both the university vice-chancellor and the Borderlands director to discuss the funding shortfall.”

The funding request has been approved by the Borderlands Partnership meaning that all eyes are now on the Ministry for Housing, Communities and Local Government for their decision on the funding shortfall.