Warrington Borough Council has confirmed that the financial performance of its flagship town centre regeneration scheme, Time Square, has "fallen far short of even the cautious assumptions" set out in the original business case. The admission comes as the cash-strapped authority continues to grapple with significant financial pressures across its wider commercial portfolio.
Overall commercial losses exceed £134 million
According to a report prepared for the council's scrutiny committee meeting at the end of last month, the authority recorded an overall loss of £134.58 million on its commercial programme – excluding treasury management investments – for the period 'up to and including' 2025-26. Only the loans portfolio delivered a positive return, contributing £74.88 million to the council over that same timeframe.
The council's commercial portfolio comprises several distinct investments: the loans programme, commercial property investments, solar farms, Redwood Bank, Wire Regeneration, Warrington's Own Buses, Time Square and Together Energy. The report stated that the 'broader commercial programme' posted an overall loss of £134.58 million alongside a 'capital decline' of £296.87 million.
Time Square development costs reach £151 million
The Time Square scheme was designed to act as a catalyst for town centre regeneration, addressing the absence of a central cinema and family-oriented leisure offer while generating a 'significant financial return' for the council. However, the report noted that the total development cost reached £151.167 million, and the scheme's operational performance has been markedly below initial projections.
"The financial performance to date has fallen far short of even the cautious assumptions in the business case which has required a circa £5m annual pressure to be funded by the council," the report stated. It attributed the shortfall to a series of external shocks, including Brexit, the Covid-19 pandemic, energy price inflation and the cost of living crisis, all of which disproportionately affected the leisure sector.
Operational delays and urgent financial review
Operational delays during 2020 reduced early income streams, and a comparison of the financial model against actuals from 2020/21 to 2024/25 revealed substantial variances. The report also highlighted an urgent need to explore the 'financial arrangements and treatment' of the Time Square development, suggesting that the current structure may require reassessment.
In terms of remedial measures, the council has initiated a property review with all leases being monitored to 'maximise best value'. The report added: "Potential new letting planned to replace recent vacancy in leisure unit. A full review of the operation of Time Square is underway with a full report expected imminently."
Warrington Market continues to trade well as the anchor for the scheme, with a review ongoing to ensure it remains cost neutral in future. The scrutiny committee will receive the forthcoming full report on Time Square's operations, which is expected to outline further steps to address the financial pressures.
