Issue - meetings

Report attached.

The Cabinet considered a report of Councillor Noordad Aziz, Deputy Leader and Portfolio Holder for Transformation, Education and Skills, seeking confirmation that the Council was committed to financially supporting the proposed development of Market Chambers through a commitment to provide annual funding towards the operational costs of Market Chambers once opened in late 2027 in accordance with the estimated sums set out in paragraph 4 of that report.

Members were also advised that such funding would need to remain in place unless and until the Market Chambers scheme was in a position to self-fund without the need for significant support funding from the Council.  The Council's independent advisors, Bradshaw Advisory, had produced financial forecasts confirming their advice that Market Chambers would be largely self-financed within 10 years from opening.  Although from that point onwards, the Council should assume that it might be required to provide some funding in the region of up to £50,000 to £60,000 per year whilst identifying alternative revenue generating opportunities to ensure that Market Chambers no longer required any Council support.

Councillor Aziz provided a brief introduction to the report.

Councillor Khan asked how frequently the level of future financial support from the Council for the operation of Market Chambers would be reviewed.  He noted that, given the projected timescales, this responsibility would become a matter for the proposed new unitary authority, which introduced an element of risk to any long-term arrangements.  Councillor Aziz responded that the level of financial support would be reviewed from time to time, as necessary.  In respect of the long-term arrangements, the new unitary authority would be fully apprised of the situation and elected councillors for Hyndburn wards within that council would need to be a strong advocate for supporting this project.

Approval of the report was considered to be a key decision.

Reasons for Decision

The Council was currently promoting a Compulsory Purchase Order (CPO) for Market Chambers, Accrington.  An Inquiry had been opened with an Inspector appointed by the Secretary of State for Levelling Up, Housing and Communities in December 2024.  That inquiry had not yet closed but had been adjourned for closing submissions to take place in early 2025.  The Inspector had not yet determined whether or not the CPO would be confirmed.

To provide the best opportunity for the CPO to be confirmed by the Inspector, it was necessary for the Council to demonstrate that the proposed development, was likely to contribute to achieving the promotion or improvement of the economic, social, and environmental well-being of the Council's area.  The Council also had to show that it had a clear plan for the land's use including confirmation that the required funding was available.  This included both development costs and reasonable ongoing operation costs for the proposed development.  There should be no physical or legal impediments that would prevent the development from being implemented and maintained in the future.

In January 2022, Cabinet had given its formal approval in support of the Town Centre Stakeholder Board’s recommendations that  ...  view the full minutes text for item 312