Debts of almost £3m are to be written off as Liverpool Council looks to revamp the city’s markets.
After going into liquidation in 2019, Liverpool Markets Limited (LML) owed £2.8m to the city council and transferred market services back to the local authority. The council’s cabinet will now seek to write off that debt as it provides a new vision for Liverpool’s markets.
A report to senior councillors has outlined how it will use a bad debt provision written into the authority’s budget to write off the losses in the city’s account. The commissioners appointed to oversee the council said they were concerned by the ongoing overall cost to the public purse by the financial losses continuing to be experienced by the former LML markets.
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As a result, the findings of a lengthy public consultation have identified almost £1m in quick wins over a two year period to “get the basics right”. In February, the findings of a survey with traders, market users and non-users were shared by Danny Collins, director of Savills’ economic team, which have helped form the basis of a long-term strategy for the city’s markets.
The report, which outlines the Future of Markets strategy, said a number of ‘Big Ideas’ have been identified and developed that could help transform the future of Liverpool’s market offer. It said: “However, it is important to get the basics right before building to this ambition to bring the council spend down, address the deficit from St John’s Market and maximise opportunities through external funding to realise some of this potential; Great Homer Street Market being the key driver for a Levelling Up Bid is an example of this.” Through its new strategy, Liverpool Council is seeking to implement a number of changes with the £920,000 pot identified through its medium term financial plan.
These include promotion of the different market locations; delivering a maintenance plan for 10 sites around toilets, parking and utilities; implementing digital payment systems; creating an online expression of interest form to attract new traders and opportunities, as well as the establishment of a steering group of council representatives, traders and members of the community.
Cllr Harry Doyle, assistant mayor and cabinet member for culture and visitor economy, said: “As we now operate our markets in-house, following public consultation we have developed a ‘Future of Markets’ action plan which means there’s a really positive future for our markets. Working in partnership with stakeholders, the ambition is to develop a vibrant offer which will make our 10 sites more attractive and appealing to residents and visitors.”
The cabinet member added that it was “disappointing” that the council found itself in a position where it had to write off debts. He said: We have looked at all options but the historical debt we have inherited is from a company that has now been dissolved, so it is impossible to recoup what is owed to the city council.
“Reluctantly we are in a position where we have no choice, but to write-off the debt.” The report to the council’s executive team admitted that implementing the quick wins, while developing short and long term actions, “will be challenging”.
In order to manage this a two-year fixed term post will be created that will supplement the work of a number of service areas, co-ordinate delivery and report on progress. The council will also seek to award two contracts for the provision of the city’s Christmas markets, having previously borne the brunt of the cost.
The main strategic change is that no costs will be incurred by the Council and that all costs and associated risks will be the responsibility of the provider - expected to be Clarke Events and Arena Structures. All elements of the markets provision, including its future direction, writing off of debt and Christmas staging will be debated by the cabinet at Liverpool Town Hall next week.
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