North Somerset Council is grappling with a costly predicament over Carlton Street car park in Weston-super-Mare. The council is considering a £2.6 million repair plan to address structural issues, reopen upper floors, and reduce annual losses, which currently stand at £269,000 for the 2024/25 financial year.
The car park, leased until 2058 under a long-term agreement described by council leader Mike Bell as “the worst deal any council has ever signed”, has been plagued by poor construction quality. Most of the multi-storey facility has remained closed due to safety concerns. Rent payments continue to increase despite the car park’s limited usability.
The proposed repair plan would reopen the upper floors for fewer vehicles, improving capacity to around 330 spaces but still falling short of the 350 spaces mandated by the lease. Even after the repairs, annual losses are expected to be £169,000—a significant reduction, yet still a substantial cost for the cash-strapped council.
The council’s Corporate, Assets, Transport, and Environmental Services (CATES) scrutiny committee will review four options on February 26. In addition to the repair plan, options include permanently closing the upper floors and operating only the ground floor, closing the car park entirely (which requires landlord consent), or demolishing and rebuilding at an estimated cost of £14.7 million with a £1.17 million annual loss.
Ownership complications add to the challenge. While the council owns the freehold of the land, the car park is leased back from the leaseholder under a 200-year lease contracted in 2012. Due to a contract clause, the council cannot take ownership of the car park until 2058. Specialist legal advice has concluded there is no viable legal basis to pursue damages or terminate the lease agreement.
Although permanently closing the upper floors would lower the annual loss to £71,000, it would violate lease obligations requiring at least 350 parking spaces and keeping the facility in good repair—a breach the council already faces.
Council officers recommend proceeding with the £2.6 million repair works as the most viable option. The capital budget has allocated £2.75 million for this purpose, separate from the revenue budget, which is under pressure from social care costs and reduced government funding. This financial strain has led the council to approve an exceptional 8.99% council tax increase. While capital spending is distinct from revenue, borrowing to fund repairs could raise interest costs, impacting overall finances.
North Somerset Council now faces the challenge of managing significant repairs and financial shortfalls stemming from a problematic lease deal made over a decade ago, aiming to balance service provision, legal obligations, and fiscal responsibility.