Unbudgeted costs are being attracted to the redevelopment of Nelson’s Pendle Rise shopping centre, the borough’s deputy leader told a town board meeting.
And Liberal Democrat councillor David Whipp hopes Pendle’s new Labour MP Jonathan Hinder can help the spending process become more flexible.
He said: “Revenue consequences are an issue. We have got funds to invest but it’s for capital items.
“Pendle Council, directly and indirectly, is spending a fortune on the operation of the centre and with business rates matters.
“And there’s a huge amount of resource being used with officers. It’s sucking more and more people in.
“This is having a significant on the bottom line. We’ve taken £500,000 of our reserves to meet these un-budgeted costs. It’s not sustainable.
“The question about whether some capital funding can be converted to pay for transitional costs is really important. I support the board and would appeal to the government to support that, through our MP. ”
Mr Hinder said the move would be like “robbing Peter to pay Paul” but he understood Cllr Whipp’s point.
Cllr Whipp added: “I think there would be some flexibility. We have already had some flexibility with the Accessible Nelson project. Lancashire County Council could have put in more than it did. We have put in a contribution. But all the enabling fund we have got is committed. But perhaps as well as flexibility there might be some additionality?”
Town deal board chairman Stephen Barnes said: “I don’t object to any request to the government from Cllrs Whipp and (leader) Asjad Mahmood. But the risk lies with the applicant, according to the rules.”
Nelson’s town deal has a £25m budget from previous government. Pendle Rise’s redevelopment has been allocated £10.3m.
So far, £4.3million has been spent buying it, £1.2m is earmarked for a compulsory purchase order, £1.5n is budgeted for demolition and clearance and £800,000 for upkeep, access work and contingencies.
The new Long Term Plan funding for Nelson, offering £20m may assist, the board was told.
Phillip Spurr, borough place director, said: “We have some good news regarding the Long Term Plan and Jonathan has helped. Money will come but be slightly delayed.
“Between 2025-26, the government will ask for more consultation by councils. Then the money will flow from 2026-27. However, it may be re-guided to reflect new government priorities. Details are to come.”
He added: “We have a little bit of vacant revenue funding at the council. But it’s very (minimal).”