A Conservative councillor has alleged that Somerset Council may have incurred a loss of nearly £5 million from the sale of the Marks and Spencer store in Yeovil. This claim highlights ongoing concerns about the council’s handling of commercial property investments.
Under previous Conservative government guidance, Somerset’s four district councils were encouraged to borrow substantial sums to invest in commercial real estate. The strategy aimed to generate rental income to support essential public services amid declining central government funding. By 2017, South Somerset District Council invested £7.65 million to acquire the Marks and Spencer outlet located on Middle Street in Yeovil’s town centre, using loans from the Public Works Loans Board.
Since declaring a financial emergency in November 2023, the newly formed Somerset Council — which replaced the district councils in April 2023 — has been actively selling off commercial assets and other non-operational properties to stabilize its budget.
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Councillor Diogo Rodrigues, leader of the Conservative opposition, stated that the Marks and Spencer store was sold for £2.8 million, resulting in a loss of approximately £4.85 million. The Council has not publicly confirmed this figure, citing the commercial sensitivity of its investment details.
During a meeting of the council’s executive committee in Taunton on November 5, Mr. Rodrigues questioned the transparency and financial impact of the property sales. He noted that the council had reportedly sold £76 million worth of properties originally purchased for £104 million, exposing a £27 million deficit. He specifically asked for confirmation about the sale price of the Yeovil store and outstanding borrowing related to it.
Council deputy leader Liz Leyshon acknowledged in April 2024 that JLL, a real estate company, had been appointed to sell the Yeovil Marks and Spencer property with a guide price of £2.8 million, emphasizing that sales must reflect current market valuations. As of November 6, the property no longer appeared on JLL’s listings, which could indicate it has been sold or the listing withdrawn.
Leyshon declined to publicly disclose the final sale details, stating the information remains confidential to protect ongoing transactions. She explained that individual property data is shared regularly in confidential sessions with the relevant executive committee but cannot be made public due to commercial sensitivity.
In recent reports, Somerset Council revealed it sold £90.81 million worth of investments during the 2024/25 financial year and aims to offload an additional £35 million by March 2026. Since April 2025, sales totaling £7.79 million have been completed, with marketing underway for further properties valued at £10.6 million.
Regarding borrowing, Leyshon clarified that the council manages loans across its entire portfolio rather than on an asset-by-asset basis. Detailed financial analyses, including rental returns, operating costs, and net profits or deficits, are provided in internal reports accessible to council members.
These developments underscore the financial challenges facing Somerset Council as it navigates the fallout from its ambitious property investment strategy.