New questions over Newport indoor market redevelopment
The market deal, which leased the building to the developer for 250 years, also included an agreement under which the council would receive a share of future rental income.
However, no rental payments have yet reached the council, it said.
'Three years on and not a penny has been paid,' said Conservative councillor David Fouweather.
'We need some openness and transparency. The redevelopment was supported by £6 million of taxpayers' money.
'The public has a right to know what's going on. Why hasn't [the council] been receiving rental payments?'
Separately, local Conservative campaigner Michael Enea has questioned what proportion of the overall project cost was funded by the council loan.
A council spokesperson said the redevelopment had 'transformed' the market, attracted new independent businesses to Newport, and raised city-centre footfall.
But the council said it had not received any rental share payments, and did not clarify how much of the project its loan had ultimately covered.
'As per our rental agreement, which is in place, the rental income share is calculated on the basis of income received, minus agreed deductions,' the spokesperson said.
'Agreed deductions include any fitting-out and rent-free periods offered to new occupiers by the market operator. These deductions should not be confused or misinterpreted, as they do not relate to the original development.'
A 2019 council report described the agreement as providing '15% geared rental based on the gross rental received, less loan interest payments'.
Freedom of Information disclosures, meanwhile, have shown the council loan is repayable with 5% monthly interest payments and is due to be 'redeemed' in February 2026.
Speaking at a council audit committee meeting last week, Cllr Ray Mogford requested the market loan be included in a private briefing to members at their next meeting, in September.
'It's been difficult to find information out about that in the public domain,' he said.
Committee chairman Gareth Chapman said members 'have the right… to address that in a closed session'.
On the loan arrangements, the council spokesperson said 'we have received money by way of interest payments on this loan', but described financial input from the market owner as being 'commercially sensitive and not for the council to disclose'.
'The development transformed the former provisions market, breathing new life into the listed building and offering residents and visitors to the city a great place to meet, socialise and work,' the council spokesperson said.
'It has also helped some businesses who are at the start of their journey to establish a presence in Newport, with a number of former occupiers having taken up residence elsewhere in the city centre after vacating the market.'
'Independent businesses, like the ones in the market, are at the heart of our city, and we will continue to provide all the support we can to help them thrive,' they added.
LoftCo, the company which led the redevelopment, was contacted for comment on the matter.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Leader Live
2 hours ago
- Leader Live
Amount of council tax owed to Wrexham Council revealed
The Leader recently submitted a Freedom of Information (FOI) Act request to the council. In that, we asked the to provide provide; the total amount of outstanding council tax owed to Wrexham Council as of the most recent date available. We also asked for their the methods they use to recover these outstanding council tax debts and the total amount of council tax debt that has been written off in the past two years. In their response, they confirmed that a total amount of outstanding council tax owed to them is currently £11,741,072.47. TOP STORIES Cost of reverting 52 roads back to 30mph in Wrexham revealed Taxi driver to lose job after speeding in 20mph zone saw him stripped of licence 'Totally unique' floating markets to visit North Wales later this month They added: "Many accounts are on long term arrangements, or subject to Attachments of Earnings, Attachments of Benefits, or Enforcement Agent Action." They added that a sum of £988,000 has been written off over the last two years. Reasons for write-offs include bankruptcy, insolvency and deaths. Richard Weigh, Wrexham Council's chief officer for finance and ICT, said: 'Councils all over the country continue to face really tough financial challenges, and council tax plays a crucial role in helping to support the public services that all communities rely on. "So, it's important that we take action to recover council tax arrears in accordance with regulations. 'However, we know these are difficult times, and when residents contact the council about arrears, we do provide advice and support, and offer signposting where appropriate to various organisations and departments - both in-house and externally."
Scotsman
6 hours ago
- Scotsman
Why Chancellor Rachel Reeves must resist pressure to become a left-wing Liz Truss
Sign up to our daily newsletter – Regular news stories and round-ups from around Scotland direct to your inbox Sign up Thank you for signing up! Did you know with a Digital Subscription to The Scotsman, you can get unlimited access to the website including our premium content, as well as benefiting from fewer ads, loyalty rewards and much more. Learn More Sorry, there seem to be some issues. Please try again later. Submitting... There is no doubting that Rachel Reeves is in an extremely difficult position – caught between Labour's pre-election promise not to raise taxes on 'working people', party rebellions over proposed benefit cuts, her own 'fiscal rules', and a national debt of £2.7 trillion. Amid these competing pressures, the Chancellor somehow needs to find a way to fill a £51 billion black hole in the government's finances in time for her autumn Budget, according to the National Institute of Economic and Social Research, a leading think tank. Advertisement Hide Ad Advertisement Hide Ad Despite the exhortations of some on the hard-left, the Chancellor must avoid seeking the easy way out by suddenly deciding to throw out the rule book and transforming herself into a sort of left-wing Liz Truss. To be fair to Reeves, she shows no signs of making such a horrendous mistake, but political pressure can do strange things to even normally sensible people. A lettuce covers the face of Liz Truss on a campaign advertising board ahead of last year's general election, when she lost her seat (Picture: Jacob King) | PA Clever ploy that backfired The immediate market reaction to the disastrous mini-budget concocted by Truss and her Chancellor Kwasi Kwarteng in 2022 led to her downfall within weeks. Despite containing an eye-watering £45 billion of unfunded tax cuts, the then Conservative Prime Minister pretended this was not a proper 'Budget' but only a mere 'mini-budget'. They thought this was a clever ploy, as it avoided the need to get an assessment from the Office for Budget Responsibility. However it turned out to be another reason why investors were so worried that the government's plans did not add up. The result was a fall in the value of the pound, rises in both mortgage rates and the cost of UK Government borrowing, and very real pain for ordinary people. Advertisement Hide Ad Advertisement Hide Ad Ideological dreamers on the hard-left and hard-right may refuse to accept the advice of the 'experts' they love to deride, but no Chancellor can afford to be so cavalier and hope to survive in their job for long.
Scotsman
6 hours ago
- Scotsman
The massive sums paid by Scottish universities to overseas recruiting agents revealed
Sign up to our daily newsletter – Regular news stories and round-ups from around Scotland direct to your inbox Sign up Thank you for signing up! Did you know with a Digital Subscription to The Scotsman, you can get unlimited access to the website including our premium content, as well as benefiting from fewer ads, loyalty rewards and much more. Learn More Sorry, there seem to be some issues. Please try again later. Submitting... Scottish universities are spending soaring sums of money on overseas recruiting agents to attract wealthy foreign students. New figures show seven of Scotland's mainstream higher education institutions spent £15.2 million on payments and commission for specialist operatives in one year to attract rich international students to enrol in courses. Advertisement Hide Ad Advertisement Hide Ad Scotland rank: 4. UK rank: 31 The University of Aberdeen is a UK Top 20 and World Top 200 University with outstanding levels of student satisfaction. Heriot Watt, Strathclyde and Aberdeen universities all spent more than £4m each on agent fees, the figures for 2023/24 show. The total spent since the 2019/20 academic year is £88.2m for the institutions which responded to Freedom of Information requests. But the true amount for the sector will be far higher, given the small number of the 15 universities surveyed that agreed to disclose the data. Others said the information was 'commercially sensitive' and opted not to share it. Neither Edinburgh nor Glasgow universities disclosed the level of payments made to overseas recruiting agents for 2023/24. Advertisement Hide Ad Advertisement Hide Ad Universities Scotland, the umbrella body for the sector, said foreign students had become 'essential' to propping up cash-strapped organisations. Scottish Conservative shadow education secretary Miles Briggs said universities were 'enhanced' by international students who make a 'positive social and economic impact'. However, he added: 'Clearly cash-strapped institutions are having to speculate to accumulate. They know the SNP has created a near impossible environment, and they rely heavily now on foreign students for their fees. Miles Briggs MSP 'We also know that the SNP's approach to higher education is freezing out Scottish students from their own universities.' Advertisement Hide Ad Advertisement Hide Ad Two years ago spending on recruitment agents was at a high of at least £18m - an increase of 50 per cent on the 2019/20 academic year. Fees for overseas students are an average of £22,000 per year while there is an SNP-imposed cap on places for resident Scottish students. The University of Aberdeen has 102 'active agents', who it said were 'active in all regions except for the United States of America'. The university spent £5m on these workers. By contrast, the University of the Highlands and Islands employs five operatives working in areas as diverse as Brunei, Cambodia, Lebanon and Kuwait. Advertisement Hide Ad Advertisement Hide Ad Agents are usually paid a referral fee for candidates who sign up for courses, either as a flat rate per student or a percentage of their fees. They can help applicants navigate the application and immigration process. Concerns have been raised the agents may prioritise chasing commissions over the best interests of students. The number of 18-year-olds from Scotland's most deprived areas securing places at university has increased by 100 to 1,960, which is a record high. The number of young Scots who have secured a place at university this year has also increased to a new high of 16,340 acceptances for 18-year-olds, up 4 per cent on last year. While there are caps on the number of home students who can access a place at a Scottish university - and receive free tuition - there is no limit on the number of overseas students. Advertisement Hide Ad Advertisement Hide Ad A Universities Scotland spokeswoman said: 'A decade of public underinvestment in university teaching and research has meant that cross-subsidy from international student fees has become essential. 'Recruitment, particularly where institutions look to diversify into new markets, does require upfront investment.' The spokeswoman said investment delivered a 'strong return' for both universities and the wider Scottish economy, saying international students contributed £4.75 billion between 2018/19 and 2021/22. 'The fact tens of millions have been spent on these agents, working in literally every corner of the globe, shows how the SNP has forced universities out into the world just to make ends meet,' Mr Briggs added. Advertisement Hide Ad Advertisement Hide Ad A Scottish Government spokeswoman said international students played a positive economic, social and cultural role in Scotland. "They add to the diversity of our communities, enrich the learning experience and support local businesses and jobs,' the spokeswoman said.
