Sutton's ambitious plan to regenerate its civic and town centre has hit a snag, as rising costs have rendered the project unaffordable. During a Strategy and Resources Committee meeting on Monday 08 December 2025, councillors decided to terminate the procurement process for the Sutton Civic and Town Centre Regeneration project, citing escalating costs and financial risks.
The project aimed to create alternative premises for council offices and the library, dispose of the existing Civic Centre site, Gibson Road Car Park and Secombe Theatre site for housing development, and improve the retail and leisure offer in the St Nicholas Shopping Centre.
The escalating costs that ultimately led to the project's termination were attributed to several factors. These included additional construction and refurbishment work identified from detailed surveys and design development, as well as extra work required to the shopping centre and areas outside of the new civic hub boundary to meet fire and building regulations. Concerns about potential cost increases as the design progressed and during the construction contractor procurement phase also contributed to the decision to halt the project.
Lucy Taylor, Programme Manager for the Sutton Civic and Town Centre Regeneration, explained that proposals from Genr8 Kajima Regeneration Ltd (GKRL), the preferred bidder selected in October 2024, were ultimately deemed unaffordable. She noted that further work to quantify the costs of creating a new civic hub revealed additional expenses and risks that the council considered imprudent.
According to the meeting agenda, the council had intended to partner with GKRL to refurbish the former Debenhams unit in the St Nicholas Shopping Centre to create a new civic hub and library, reorganize the shopping centre to attract more leisure uses and widen the retail offer, and develop the existing civic centre site with the other sites for housing with a scheme of about 740 new codes of which 50% would be affordable.
Councillor Barry Lewis, Leader of the Council, stated that while the decision was disappointing, it was the right one. He emphasized the council's commitment to responsible financial management and its continued ambition to provide housing and revitalize the town centre. This is not us walking away from Town Centre regeneration,
he said. This is us refusing to commit millions of pounds of public money to a deal that no longer stacks up. We are choosing stability over wishful thinking.
The committee agreed to continue developing proposals for housing on the current civic centre site, the vacant Secombe Theatre site, and the Gibson Road Car Park site. The original plan included 50% affordable housing, and the council aims to maximize the delivery of housing, including affordable housing, on these sites. The council will also review options to relocate services within the Town Centre, potentially using council-owned assets across the borough or remodelling existing retail units in the St Nicholas Shopping Centre.
The council will explore options for civic accommodation, including council assets in Sutton Town Centre and across the borough, and consider how resident-facing services and the library could be delivered in Sutton Town Centre. A feasibility report on alternative options for civic accommodation and service relocation is expected to be presented to the Strategy and Resources Committee in 2026.
Councillor Sunita Gordon, Lead Member for Resources, emphasized that the council remains ambitious to provide housing on the site, on Gibson Road and the Seacombe Centre, and is keen to make sure the town centre continues to be a vital and flourishing town centre.
