7 days ago
Peterborough City Council sells £50m worth of assets to pay debts
A football stadium, shopping centre and farmland were among a council's most lucrative sales as it tried to repay its City Council made £50m from asset sales over the past decade, according to a Freedom of Information (FOI) authority has more than £500m of debt, which it said was the result of funding new roads, schools and regeneration sold Weston Homes Stadium back to Peterborough United in 2021 and sold land at the Hereward Cross Shopping Centre in 2023.
The stadium and surrounding land was bought by the authority for £8.4m in 2010. The council sold it back to Posh for just over £ club said it was given a £1.25m discount in recognition of its "economic and social benefit to the city" and £2.8m investment into the Allia Business Centre which formed part of the leasehold at Hereward Cross, which housed Poundland and the Sir Henry Royce pub, was sold for a "mutually acceptable price", the council said.
The council's most recent documents said it faced a £23m budget gap for said asset disposals cannot be used to fund day-to-day services and were instead used to "repay its debt balances, therefore reducing the cost of borrowing (interest)".It said the cost of servicing external borrowing was about £38m per to the Local Democracy Reporting Service, the other assets which fetched the best prices were: Newborough Rural EstateAvenue Farm in NewboroughTurves Farm in Newborough Land at NorthminsterEardley Grange Farm and Hill FarmLand at Bishops RoadFletton Mills (lots seven and eight) at Fletton QuaysWhitworth Mill The council's budget document said its "debt levels compare high to other unitary authorities, whilst at the same time our reserves levels compare low".It said it could be left with as little as £5m at the end of 2024/25 in its general reserve fund and just more than £14m overall in its savings.
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