THE town centre’s revolutionary Health on the High Street scheme is expected to cost almost £10m more than anticipated, the Chronicle can reveal.
Councillors will meet on Wednesday to discuss the next steps of the scheme after cabinet recently gave their approval to progress to the next stage of design and development - known as RIBA 4.
The development has been hailed as the UK’s largest relocation of hospital outpatient services outside a clinical setting.
It’s transformed the first floor of the shopping centre into a health and wellbeing hub, starting with Barnsley Hospital’s first outpatient appointments transferring to the new satellite centre in the heart of town.
The first services to transfer to the Alhambra health and wellbeing hub, in the former Wilko store on the upper floor of the centre, are ophthalmology, optometry and retinal screening and this will be followed by rheumatology, dermatology and orthotics.
Other hospital outpatient services are due to move in early 2026 as part of its phased opening overseen by the hospital, council and South Yorkshire Mayoral Combined Authority (SYMCA) which is due to be fully operational in 2028.
However, a report has revealed that the council is anticipated to go over its budget by more than £9m and needs more than £3m to progress to the completion of RIBA 4.
It said: “Lessons learned on previous projects have highlighted a need, particularly on refurbishment projects, to carry out robust surveys.
“Not doing so introduces risk which could result in significant delays and cost overruns, as well as potential safety, structural and legal risks.
“Further, contractors will typically build in additional cost to provide a ‘comfort blanket’ to cover any higher areas of risk associated with a lack of information, leading to inflated tender sums.
“This does however mean that completion of RIBA stages 3 and 4 will exceed the current available funding approvals for the scheme.
“This report seeks approval of further funding of £3.16m to ensure the project can progress to the end of RIBA 4 (£1.817m to complete RIBA 3 and £1.343m to complete RIBA 4).
“The reason for this is due to a significant amount of work that has taken place in the interim to better understand the scope and the cost plan.
“Cabinet members are also asked to note the increase of £9.438m in the latest cost plan estimates since the last cabinet report from original estimate of £50.219m to the revised total of £59.657m.”
Barnsley Council leader Sir Steve Houghton told the Chronicle: “It’s going to be an even bigger and better project than we first imagined.
“Our aim is to make this the leading health and wellbeing facility of its kind in the UK.
“Our partners share this ambition and if that means we need to invest more, so be it, it’s worth every penny.
“Only the best will do for the people of Barnsley.”
Included in the total for the project is the £4.5m the council spent on acquiring the Alhambra, £4.4m on project management and £8.75m on NHS costs.
A council spokesperson said: “As we move through each stage of the RIBA design process, our understanding of the building and the work required becomes more detailed and more accurate.
“This means that cost estimates naturally evolve as we refine the scope, identify what the building needs, and ensure the space is fit for its long-term future.
“Some of the adjustments reflect essential works linked to the age of the building, including elements that haven’t been addressed for several decades.
“Other changes come from improvements we want to make so the ‘Health on the High Street’ space can deliver the best possible experience for residents and serve as a valuable, modern asset in the town centre.
“The additional £9m isn’t simply an ‘extra’ cost, but a result of gaining a clearer picture as the project develops.
“This is a normal part of any large-scale redevelopment, especially in older buildings, and it ensures we make well-informed decisions that will stand the test of time.
“These are moving figures by nature, and they help us stay responsive to what the project needs to succeed for many years to come.”