Agenda item

            The Sub-Committee received a report of the Strategic Director, Corporate and Policy which asked members to consider a request from Widnes Market Traders’ Association to reduce stall rental at the Market for 2009/10, in light of current trading trends.

            Members were advised that the Council had received a formal request from the Widnes Market Traders’ Association for stall rentals to be reduced at the market for 2009/10, given the current trading trends. The Traders’ Association had asked that the Council considers reducing rents by 50%, given what they described as “extraordinary “ times.

            It was noted that the Market was experiencing its first decrease in occupancy levels since it opened in 1995. The concern is that if more stall holders were forced to leave the Market, then its overall viability would be threatened. Whilst some new traders had tried to establish a business in recent times, three had had to cease trading within a six month period.

            It was further noted that the Market, as a business, had made a significant financial contribution to the Council over many years and played an important part in the overall shopping offer within the Borough, employing many local people and attracting visitors from nearby towns.

            Members were further advised that there was a fine balance to be struck in circumstances such as this and rent levels were already a key component of running a commercial operation such as a market. If they were too high for traders to sustain a healthy business and they therefore moved on, this had an impact on the view potential users of the Market and could lead to a downward spiral. However, any reduction had to be reviewed against the overall financial picture the Council was facing. Reducing rents in turn reduced income to the Council at a time when other sources of income were also reducing. Overall reductions in income required further efficiencies/savings to be found from elsewhere in the Council’s budget.

Members were advised that in view of the above it was considered a 50% reduction, as requested, was too great a level to support at the current time, given that it would lead to a significant reduction in income to the Council, taking into account the wider responsibilities of the Council. However, the situation faced by traders was real and was recognised and the potential impact in the long term on the Market was fully appreciated. In all the circumstances, it was suggested that a 10% reduction be introduced for 2009/10 and the inflationary rise that was due to be applied for that year no longer be applied.

            The Sub-Committee noted that the Council had a direct interest to ensure Widnes Market continued to be successful, both as a business and as a key contributor to the Borough’s shopping offer. It was agreed that a further report be submitted outline a future business plan for both markets and further reports be made on the performance of the market following the implementation of this decision. 

            RESOLVED: That

(1)       no inflationary uplift be applied to 2009/10 rents;

(2)       a 10% rent reduction be applied for 2009/10 and be subject to a further review before being applied beyond 2009/10; and

(3)       the Strategic Director, Corporate and Policy be requested to identify compensatory savings from within that Directorate’s Budget