Carmarthenshire Council’s cabinet has been told that the £40m transformation of the former Debenhams building in St Catherine’s Walk will require an extra £2m after engineers uncovered a structural issue during construction. The defect was not visible during earlier surveys and only emerged once extensive internal work had begun.
The building, which closed when Debenhams collapsed in 2021, is being turned into a new health, leisure and education hub with support from UK and Welsh Government funding. The council had hoped the site would open in 2026, but the newly identified problem is expected to push the timetable back.
Cllr Alun Lenny, cabinet member for resources, said the setback was unavoidable but insisted the project remained vital for the future of Carmarthen town centre. He said boarded‑up Debenhams stores continued to blight high streets elsewhere and that Carmarthenshire would not allow the same to happen.

Structural issue delays major town centre redevelopment
The council has not yet disclosed the nature of the defect, but a full report is being prepared for councillors and the public. The redevelopment will house community health services, council facilities, a 24‑hour gym, soft play, adventure golf, go‑karting and education space linked to Hywel Dda University Health Board and the University of Wales Trinity Saint David.
Work began in 2024 and the council had originally targeted a 2026 opening. The additional £2m will be used to address the structural issue and keep the project moving.
Llanelli market and multi‑storey car park set for demolition

The capital programme confirms that Llanelli Market and the Murray Street multi‑storey car park above it are scheduled for demolition, with £2m allocated across 2028‑29 and 2029‑30. The market would relocate to Vaughan Street, a proposal that has already prompted concern from traders and opposition councillors.
Swansea Bay News has previously reported on calls for a clearer vision for the town centre and fears that the loss of the market and car park could further weaken footfall.
Former leisure centre to be knocked down
The former Llanelli Leisure Centre in Park Crescent is also earmarked for demolition, with £1.2m set aside for 2026‑27. The building has been empty since the new leisure centre opened and has been discussed as a potential site for Ysgol Dewi Sant, although no final decision has been made.
Investment in schools, roads and the Towy Valley path

The report outlines £5.2m for continued improvements at Ysgol Bryngwyn in Llanelli next year, alongside £12.9m for other school projects over the next five years. This is in addition to £46m already available but unspent.
A further £2.2m will be invested in parking areas, electric vehicle charging points and flood‑mitigation work along the Towy Valley shared‑use path between Carmarthen and Ffairfach, which is nearing completion.
Road repairs will receive £4.5m in 2026‑27, with continued spending on bridges, drainage and street lighting across the county.
Harbour and heritage buildings included in programme

Burry Port Harbour will receive another £1m in 2026‑27, following £1m already committed this year. Kidwelly Town Hall, a Grade II‑listed building, will undergo £1.1m of essential repairs over the next two years.
The council says the five‑year programme will be funded through a mix of Welsh Government grants, borrowing, council reserves and funding that has not yet been identified. The full budget will go before councillors on February 25.
