Traders and stall owners in the Victoria Centre Market would be given a "fair financial compensation package" if it was to close. The market's future is hanging in the balance after Nottingham City Council revealed it has been costing almost £500,000 just to keep it afloat.
Nottinghamshire Live first uncovered the unwelcome news back in January after rumours began to circulate around the market, which opened in 1971, before Christmas. Long-standing traders slammed a lack of certainty as the 'Sword of Damocles' hung over them.
Then in April the city council said it was launching a consultation, which commenced on Monday, April 25, to decide its future. The Labour-run authority said its operating model was simply not sustainable after intu, which collapsed in 2020, hiked service charges.
Read more: Trade 'decimated' at Vic Centre Market
As a result the cash-strapped council was forced to subsidise these costs, amounting to roughly £500,000 every year. Clifton Independents' councillor Kirsty Jones, for Clifton East, demanded an update during full council on Monday, May 9.
She said: "I’m sure I speak for many here when I say how sad I feel reading the recent reports of the council weighing up the decision to exit from the lease for the Victoria Market. Can the portfolio holder inform us what plans are being put in place so, were the Victoria Market to close, the traders would not be left out of pocket and alternative trading sites could be provided for them?"
Councillor Linda Woodings, who is acting lead for markets and represents Basford for Labour, replied to say: "The consultation regarding the Victoria Centre Market is still ongoing at the moment and so any representations we receive during that consultation will be given material consideration by the council in coming to a final decision.
"We've circulated [the consultation] briefing all councillors at the launch of that consultation explaining that the councilleases the market space in the Victoria Centre but has had to provide significant annual sibsidy to keep it afloat since the service charge was increased in 2015 by former owners intu.
"Because of the Conservative Government's programme of austerity over the last 10 years it meant Nottingham has lost £100m per year in Government grants. The subsidy we pay which is coming in just shy of half a million pounds per year is no longer a viable option for this council.
"As you say it is very sad because the Victoria Market has been operating from that site since 1971 and as reported previously to this council despite our investment in recent years it has not been performing well and is now less-than-half occupied. The service charges were increased to the same level as other retail units in the Victoria Centre, that has created this financial difficulty."
Despite support from Government and the council these issues, tied with decreased footfall amid the coronavirus pandemic, have led to significant losses. The total cost to keep the market running for the rest of the lease is forecast to be over £39m.
The consultation is set to last six weeks and comes as the famed mushy pea stall in the market decided to call it a day. Global Mutual, the current owner, has been asked to support the traders.
Any final decision on the future of the market is yet to be made however. "If a decision is made at the end to exit from that operation the council will offer traders a fair financial compensation package and we will provide them with support to identify alternative vacant units in the city," councillor Woodings added.
"We are very conscious this is those people's livelihoods and we understand all change is extremely difficult in these circumstances. We will need to put traders at the heart of this decision we are making."
People can take part in the consultation here: nottinghamcity.gov.uk/engage-nottingham-hub
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