04:00PM, Thursday 29 April 2021
More than £2.5million in business rates income is set to be lost during the redevelopment of the Nicholsons Centre, the council has confirmed.
The shopping centre is due to be torn down and replaced with a new complex featuring more than 650 apartments, shops and office space.
The Royal Borough sold its share in the venue to Tikehau Capital for £1 million in July 2019.
Ahead of Tuesday’s full council meeting, member of the public Andrew Hill asked how much business rates income will be lost during the construction phase of the development.
A written response from the council said the local authority is expecting to lose £2,511,250 over the five-year period covering the redevelopment.
Mr Hill told the meeting: “If you hadn’t done the deal with Areli we would’ve been nearly £3million better off over the next few years.
“It appears to be costing us huge sums to give away the land near Crossrail.
“Does it worry you that we appear to get none of the profits but residents now need to find £3million worth of savings and cuts to services nonetheless?”
Councillor David Hilton, cabinet member for finance, said the projected loss of business rates has been factored into the council’s medium-term financial strategy.
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