A Conservative councillor has raised concerns that Somerset Council may have incurred close to a £5 million loss from the sale of the Marks and Spencer store in Yeovil. This comes amid the council’s ongoing efforts to offload commercial properties acquired with borrowed funds.
In 2017, South Somerset District Council invested £7.65 million to purchase the Marks and Spencer outlet on Middle Street, Yeovil. This was part of a broader strategy encouraged by the former Conservative government, where Somerset’s district councils collectively borrowed about £290 million from the Public Works Loans Board to invest in commercial properties. The rental income was intended to support frontline services as central government funding dwindled.
Since Somerset Council was formed in April 2023, replacing the district councils, it has declared a financial emergency and begun selling off commercial and other non-operational assets to stabilize its budget.
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Councillor Diogo Rodrigues, leader of the Conservative opposition and representative for Bridgwater East and Bawdrip, alleges the Marks and Spencer property was sold for just £2.8 million. This figure would represent a £4.85 million loss compared to the original purchase price. However, the council has not publicly confirmed the transaction price, citing the commercial sensitivity of such information.
During the council’s executive committee meeting in Taunton on November 5, Mr. Rodrigues highlighted that the council had sold properties worth £76 million that originally cost £104 million, resulting in an overall loss of £27 million while still carrying the original debt.
Council deputy leader Liz Leyshon confirmed in April 2024 that the estate agency JLL was appointed to sell the store with a guide price of £2.8 million. She emphasized that sales must align with current market values to ensure the best return for taxpayers. By November 6, the Marks and Spencer listing had been removed from the JLL website, suggesting the property may have been sold or withdrawn from the market.
When pressed for more details, Ms. Leyshon declined to disclose specifics, stating that sharing information publicly could undermine other ongoing sales. She assured that confidential updates are regularly provided to the property and investments executive sub-committee, which Mr. Rodrigues has access to.
The council’s July report revealed property sales totaling approximately £90.8 million for the 2024/25 financial year, with plans to raise an additional £35 million by March 2026. Since April 2025, sales have generated around £7.79 million, with further properties valued at £10.6 million currently on the market.
Regarding the council’s borrowing, Ms. Leyshon explained that it is managed on a cash flow basis rather than being tied to specific assets. Detailed financial analyses, including rental returns, operating costs, and net finance impacts, are compiled and made available confidentially to council members.
The alleged loss on the Yeovil Marks and Spencer sale underscores the financial challenges the council faces while attempting to reconcile the debts incurred through previous commercial property investments against market realities.