Millions of pounds in public money have been used to prop up a struggling shopping centre in Newport, sparking fierce criticism from opposition councillors and business figures.
Newport City Council has spent more than £3.56 million over the past eight years supporting Friars Walk, a city centre retail complex that has failed to meet expected rental income levels. The financial support stems from a 2017 agreement that saw the council commit to covering shortfalls in rent – up to £500,000 per year – should the centre underperform.
Figures obtained by the Local Democracy Reporting Service reveal that the maximum annual payment of £500,000 has been triggered for six consecutive years.
Cllr Matthew Evans, leader of the Conservative opposition group, said he was “absolutely staggered that the council has squandered over £3.56m of local taxpayers’ money on this”. He accused the Labour-run authority of mishandling the city’s regeneration and misdirecting funds that could have supported frontline services.
“Think how many additional social service staff could have been employed or potholes fixed,” he said. “I seem to recall when I questioned the decision taken by the cabinet at the time I was told that it was merely ‘an insurance policy’ which would never be called on. Sadly, the public have been picking up the tab for Labour’s failure to regenerate the city centre.”
Despite the criticism, the council insists the deal remains beneficial to the city. A spokesperson explained that Newport received £8 million when the agreement was signed and would be liable for a maximum of £7.5 million in rental top-ups over the course of the 15-year contract.
“It is important to note that, as well as the rental subsidy, the arrangement ensures the council receives additional rent payments if the centre’s profits exceed certain thresholds,” they said.
Attention has recently turned to the future of the former Debenhams site within Friars Walk, a once-flagship location left empty following the department store’s closure in 2021. The unit is now set to be reoccupied, with a homeware retailer believed to be moving into part of the space – a development welcomed by many but seen as just one step in a much-needed wider revival.
Local Conservative activist and political commentator Michael Enea has criticised what he describes as “huge” business rates, which he claims are driving retailers away from the city centre.
“The former Debenhams site is rated at £345,000 a year, while the old Cineworld complex is £64,500 – these are astronomical figures,” he said. “No wonder vast swathes of businesses have moved to out-of-town retail parks. We need a total review of business rates in Wales whereby it becomes an incentive to trade in our town and city centres. Something has to change.”
In response, Newport City Council pointed out that setting business rates is a matter for the Welsh Government, not local authorities. However, a council spokesperson added: “We do offer support for small and medium-sized city centre businesses through our local city centre rate relief scheme, which provides a 25% discount on non-domestic rates for qualifying properties.
“Very small businesses already receive rate relief through the Welsh Government’s Small Business Rate Relief scheme. The Welsh Government also offers support for larger businesses through its Retail, Leisure and Hospitality Rate Relief scheme, which provides a discount of 40% on non-domestic rates, capped at £110,000 per business.”
With parts of Friars Walk beginning to show signs of life, pressure remains on the council to ensure its investment pays off – both financially and in terms of revitalising Newport’s embattled city centre.
