Debenhams Building expenditure reaches over £450k
The costs of the former Debenhams building exceed £450,000 per year. Despite Bedford Borough Council being judged by external financial experts in July as ‘already in Section 114 territory’ (in effect bankrupt), councillors at the Budget Overview and Scrutiny committee were told on 11th September that this year’s costs are:
- Business rates: £121,000
- Electricity and other utilities: £30,000
- Insurance cost: £16,380
- Security cost: £3,000
- Whats On Hub £117,000
Together with the purchase cost of £1.9m, that leads to ongoing borrowing costs of approximately another £170k.
The Council ticket office has moved from the Harpur Suite to the only part of the former Debenhams building which is in a usable condition. An extra member of staff has even been employed. The Committee was told that much of the building needs a substantial amount of work.
Cllr Michael Headley, Deputy Leader of the Bedford Borough Liberal Democrats and Chair of the Budget Overview and Scrutiny Committee, commented:
“This is an empty building, merely hosting the Council’s own relocated ticket office and ‘What’s On’ hub. No external tenants have been found and the Council is left paying 100% of the costs. This is not the project that was originally intended. As nice as the ‘What’s On’ hub looks, spending £450,000 a year is simply not justifiable when the Council faces a financial crisis. A significant amount of tax-payers’ money is going out the door on this project.”
“Other frontline services will be cut so this extra office can stay open.”
Councillor Christine McHugh, member of the Budget Overview and Scrutiny Committee, commented:
“According to the Portfolio Holder’s take on things – which might not be right – she would have us believe that the survey carried out at the time of purchase was insufficient for the risk on this building. The Council should have been alert to those risks, as no commercial purchaser was interested. The Mayor claimed that this building would be let out by Christmas last year, and yet now we hear that the majority of the building is ‘unlettable’.”
“Blind faith that all will be well is no substitute for a proper business plan.”