Statement on Lancaster Market
Lancaster Market
AT its meeting on Tuesday February 16, Lancaster City Council’s Cabinet, agreed, in principle, that the city’s indoor market be let to a single retailer.
The decision, which is subject to further detailed information and a series of other caveats set out in the recommendations below, would close the indoor market. However, it would not affect the other city markets – Charter (incorporating Farmers Market) and Assembly - run by the council, or its Festival Market in Morecambe
Lancaster Market has a substantial deficit, currently identified as £461,000 2009/10, rising to £492,000 in the next financial year.
The city council, along with other public services anticipates a reduction in the amount of Central Government funding it receives. More than 60% of our budget is funded by Government grants and, whoever forms the next Government, there is a very real likelihood that the money we currently receive will be reduced.
To ensure we are best placed to meet the challenges that this reduction in our funding will pose, and deliver against our priorities, the council is examining expenditure across all service areas, including those areas of discretionary service where savings can be made.
Coun Stuart Langhorn, leader of Lancaster City Council said: “Cabinet has had to consider whether the running of the indoor market in this building represents value for money to the council tax payer. Clearly an annual loss of almost £495,000 is not sustainable in the long term and so a very difficult decision has had to be made. Cabinet has also considered how the losses could be reduced and continue to run a market in the building – but this was not achievable.
“As Leader of the Council I have stated that I am committed to seeing independent traders in Lancaster and I am pleased to see that the report outlines how we will be supporting market tenants in the immediate future. The council will continue to run the successful Charter market (incorporating the Farmer's Market), as well as the Assembly Rooms and Morecambe Market.”
Cabinet has previously considered a number of market related reports and on December 9 2008, it resolved that:
“Approval be given to officers to negotiate directly with retailers to try and procure a single retailer for the Market Hall, on the basis that the preferred option would be that the current deficit is reduced to zero or, as an alternative, to report back to Cabinet should a single retailer be prepared to take up occupation of the Market Hall on the basis of the council contributing an amount that is less than the deficit currently being faced by the Council.”
Since then much work has been done to identify a single retailer and the council has appointed retail agents, Cushman & Wakefield, to undertake this work. The agents have now identified a single retailer and yesterday’s Cabinet were asked to consider the following recommendations.
(1) That approval be given to a letting of the Market Hall, Lancaster, to a single retailer on the basis set out in the report, subject to the revenue and capital implications identified within the report being approved by Full Council as part of the 2010/11 budget process.
(2) That, subject to that approval by Full Council, in order to facilitate the letting to a single retailer, whether in accordance with the proposal in recommendation (1) or to any alternative single trader should that proposal fail to materialise, approval be given to serve notices to terminate the leases/licences to existing market traders.
(3) That subject to recommendation (1) being approved, further reports be made on the staffing implications of operating the markets.
(4) That the opportunity to increase the number of days on which the Charter Market operates be investigated.
(5) That subject to recommendation (1) being approved, in accordance with the council’s Financial Regulations, approval be given to an exception to the Contract Procedure Regulations to enable the appointment of Cushman Wakefield to undertake the design/project management work on the Market Hall building.
Cabinet endorsed the recommendations but also asked that, regarding recommendation (1) the report should include a cashflow forecast.
Traders have previously raised the issue of compensation should the market close, indicating they would expect more than the basic amount payable under the Landlord and Tenant Act 1954. The council has no requirement to pay out more than the statutory compensation.
Traders have also said they would like the council to consider relocation packages so they can continue trading in alternative locations. Cabinet was informed that in some cases relocation could include the Charter Market, which currently trades on Wednesday and Saturday each week. Due to the success of this market it is considered appropriate to investigate whether additional days could be added. Traders could also be offered places at the Festival Market, Morecambe, or, should there be any vacant retail units in council ownership at the time of vacating the market, these could be offered to traders. The city council’s Economic Development staff could offer further advice.
Date Published: 23/02/10