Newport City Council is under pressure to recover a £6 million loan provided to developer Loft Co for the redevelopment of Newport's indoor market, with the repayment deadline of February 2026 now missed.
Loan Details and Profit-Sharing Agreement
The council loaned the money to Loft Co for the project, which was due to be repaid in February. Additionally, the local authority agreed to receive a share of the market's profits under a 250-year lease for the city centre attraction.
Speaking in the council chamber, Cllr Matthew Evans, leader of the Conservative opposition, stated that the loan represents "taxpayers' money and they deserve to be told what has happened to it." He asked the council's leader to "confirm the exact amount of money outstanding, and what action you've taken to ensure we get our money back in full."
Council Leader's Response
In response, council leader Cllr Dimitri Batrouni confirmed that "the loan, which remains at £6m plus interest, has not yet been repaid." He added that "the developer is engaged with the council" and that he would "continue to engage with our officers to discuss with the provider about the repayment and loan and the interest."
Cllr Batrouni acknowledged it was "quite right" to note the loan is "taxpayers' money," but expressed surprise that the Tory leader "doesn't think commercial sensitivities exist." He warned that if the Conservatives took over, their message to businesses would be "we don't believe in commercial sensitivity."
Opposition's Concerns
Cllr Evans said his group had raised concerns about the market deal when first announced. He claimed the council had "months to consider what action needs to be taken before the February deadline" and that the £6 million could have funded other projects such as business rates relief or free parking initiatives. He asked: "Are you going to apologise to the residents and repossess the market?"
Cllr Batrouni countered that there would be "no Newport market" redevelopment under a Conservative-run council that doesn't "believe in commercial sensitivity." He stated that "every local authority has to have that engagement with private business, and certain information has to be confidential - that is basic."
Political Exchange
The leader claimed Cllr Evans' "clear message to business" would be "if I am in charge, I'll tell everyone all the commercial business," which he argued would mean "no more Newport Market."
Cllr Evans insisted that "this money should have been paid back, by the very latest, [in] February." He added: "At the moment we're standing here at the end of July. We have £6m overdue. This is not commercial sensitivity. This is about transparency and us getting our money back."
Loft Co, which runs the market, was contacted for comment.
