Castleford health hub project delayed over spiralling costs

The NHS said plans to build the multi-million pound facility in the town centre were being “reworked” due to funding pressures.

Wakefield Council agreed to invest £12.5m to fund the project in 2022 to replace the ageing Castleford Health Centre, on Welbeck Street.

Original designs included bringing three GP practices, a pharmacy and some community health services together under one roof.

The project is being delivered in partnership between the council and the NHS.

In a statement on Friday (September 20), Wakefield District Health and Care Partnership (WDHCP) said costs for the scheme had gone up by more than 50 per cent.

The increase was attributed to rising construction costs and “additional design developments.”

The statement said: “The revised project cost now exceeds the available investment funding, leaving the council unable to fund the scheme.”

Mel Brown, a WDHCP director, said: “While we are disappointed by the current delay caused by funding challenges – which reflect the broader financial pressures facing both the NHS and local councils – this is not the end of the Castleford Health Hub project.

“We remain fully committed to delivering a modern, integrated healthcare facility for the Castleford community.

“We are actively exploring alternative funding options to make this vision a reality and are working closely with partners to move the project forward.”

Tony Reeves, Wakefield Council’s chief executive said: “This is a difficult decision.

“But it’s one we have to take to make sure the council’s finances are sustainable, and that we provide value for money for the local community.

“It’s still important that patients have modern and high-quality services.

“And we’ll continue to work with our partners at the Integrated Care Board to support them to find an alternative way forward to deliver improvements.”

Most of the council’s investment was expected to be recouped through leasing the building to the NHS.

The Labour-run authority described the current 1970s building as “not fit for purpose” when it agreed to release funds to build a new facility.

It said the new premises would ease pressure on local hospitals and allow residents to receive a wider range of treatments closer to home.

It was also billed as Castleford’s “first major regeneration project” after senior councillors committed to transforming the town centre to benefit residents, businesses, and visitors.

The health hub plan comes under Castleford’s strategic regeneration framework, a guide to how the town centre can be developed over the next two decades.

Demolition of the old centre and construction work on the new hub was expected to start in 2023 and be completed by early 2025.

The project now looks set to be removed from the council’s capital programme in November.

The council warned earlier this week that it expects to overspend its budget for the current financial year by just under £10m, mainly due to inflation and the continued high demand for frontline services.