Call for ‘transparency’ over council investment in indoor market project

Nicholas Thomas – Local democracy reporter

New questions have been raised over a city council’s investment in the redevelopment of an indoor market.

Newport City Council provided a £6 million loan to a developer for work on the market, which reopened in 2022.

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.

Questions

“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.

Rents

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.

Loan

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.