Gloucester City Council leaders have disclosed that the King’s Walk Shopping Centre has “never made any profit” and is currently costing taxpayers nearly £1 million each year. This revelation emerged amid discussions about seeking a Government bailout of up to £17.5 million.
As part of its strategy to recover financially, the council is considering selling some of the 277 properties it owns across Gloucester. However, Council Leader Jeremy Hilton (LD, Kingsholm and Wotton) clarified during the December 10 cabinet meeting that these sales will not happen immediately. Instead, the council intends to repay loans over a number of years.
Hilton recounted that under a former Conservative administration, the council agreed to borrow up to £80 million to invest in commercial properties, including acquiring a long-term lease for King’s Walk Shopping Centre. He described the shopping centre as a significant financial burden.
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“In 2017, the council decided—though Terry Pullen and I voted against it—to borrow up to £80 million for commercial investment,” Hilton explained. “One such investment was the King’s Walk Shopping Centre, which, to our knowledge, has never generated any profit. It is a drain on our finances, costing nearly £1 million annually. Moreover, we are stuck with a long lease that we cannot exit.”
He added that council officers recommended increasing income by attracting more tenants to the centre. “Management hasn’t been optimal. We need experts in both finance and property management to secure high-quality tenants and increase revenue, which will support this council’s financial health.”
Hilton reassured that the council has a solid plan to prevent bankruptcy. “We want to follow that plan carefully, pushing ahead without overextending ourselves,” he said.
He highlighted that the council is “asset rich” and plans to sell surplus properties that are non-essential and do not generate additional income. “We own a significant number of surplus sites which we can dispose of without impacting essential operations,” he concluded.