Council's ‘£5m loss’ in M&S store sale

THE sale of the Marks and Spencer store in Yeovil cost Somerset Council more than £5 million.

- DANIEL MUMBY

Somerset's four district councils previously borrowed money to invest in commercial properties, supposedly using the rental income to fund front-line services in the face of falling central government grants.

‘A total of £290m was invested using loans from the Public Works Loans Board (which is now part of the Treasury) - with South Somerset District Council spending £7.65m in 2017 to acquire the Marks and Spencer outlet on Middle Street in Yeovil town centre.

Since declaring a financial emergency in November 2023, Somerset Council (which replaced the district councils in April 2023) has been selling off these commercial investments and other ‘nonoperational assets’ in a bid to balance its budget.