Sefton market records £162,000 loss despite forecast £101,000 surplus
Next week councillors will try to get to grip with the puzzle of why a Market which was set to be making a profit for the council of at least £105,000 continues to make six figure losses year after year, subsidised by the Council taxpayer. The issue is due to be debated by the Regeneration Scrutiny Committee.
In 2020 Councillors were confidently told that there was a robust business case predicting a £101,000 surplus by year three of its operation “despite prudent assumptions”. In the last full year it posted a loss of £162,000 which excludes the annual repayment for the building and remodelling which is nearly double that.
The Market redesigned as a food hall has been a success with the public and a winner with the businesses within it who only pay a percentage of their turnover as rent. It has though only added to the deepening hole in the Council’s finances.
“The reality is,” says opposition leader on Sefton, Cllr John Pugh (Liberal Democrat), ” that predictions of profit that were said to be cautious,’robust’ and 'prudent’ have turned out to be wildly optimistic and plain wrong.
More worryingly, the solution advocated by our officers is to pull in consultancy services from Sefton Council’s catering business at a further cost of £41,000.
The irony of this is that the Council’s catering business appears to be even better at losing money.
It is wholly disingenuous and unconvincing though to blame the Market losses on changing circumstances after you’ve claimed your original plans were robust and prudent. "
“ Nobody wants the Market or the other plans hinged upon it to fail,” says Cllr.Pugh. “But we need a bit of light shed on the closed world of Sefton and a lot more realism and challenge because mistakes are clearly being made.
The problem is though Sefton is poorly placed to learn lessons, as it has become such a secretive place, with key information hidden from ordinary councillors under the cloak of commercial confidentiality."
