A council owned shopping centre in Merthyr Tydfil is predicted to have a £135,000 deficit for the last financial year due to lower than expected rental income and higher than expected repair costs. A council report said that rental income for St Tydfil Shopping Centre is lower than anticipated due to vacant properties and possible write off rental debt (worth £68,000).
The report also said that there has been higher than anticipated costs for repairs in both the commercial and residential properties, projected to be £69,000 over budget in relation to residential properties, and £5,000 in relation to commercial properties. The council bought the shopping centre back in December 2021 with the aim of it playing a major role in the council’s 15-year town centre masterplan.
Built in 1970, the semi-covered pedestrian shopping centre was refurbished in 1993 and it includes an indoor market. In early 2023, the council announced plans for a “21st Century transformation” of the shopping centre which the council has labelled as ST2.
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Among the ideas being considered as the council went out to consult with the public were for a a mix of shops, workplaces and places to live, improved market facilities including additional street trading and pop-up opportunities, more attractive and usable public open spaces, more high quality food and drink venues and more independent and start-up businesses.
The revenue budget monitoring report which went before cabinet on Wednesday, May 15 also said that as at February 29, a total net revenue surplus of £889,000 is projected for the council for 2023/2024. The equivalent figure at month nine was a surplus of £108,000. To get all the latest Merthyr Tydfil news straight to your inbox, sign up to our newsletter here.
It is mainly due to a projected underspend in social services of £1,595,000, which is a change since month nine when the projection was £957,000. The education department is projected to overspend by £1,001,000, and the economy and public protection department is projected to overspend by £37,000.
A surplus of £61,000 is projected for the old bus station and a deficit of £141,000 is projected against office accommodation. The neighbourhood services department is projected to underspend by £80,000 and the governance and resources department is projected to overspend by £119,000.
Corporate costs are projected to be underspent by £474,000.