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Sell-off ‘a kick in teeth for shops’
SHOPKEEPERS reacted with fury this week to plans which could mean their council-owned properties being sold to a developer at “knockdown” prices.
The Lib Dem council is accused of “heartlessly” threatening the livelihoods of small businesses in the borough by planning to sell 90 shops and offices at current “recession” prices.
The Tribune reported last week that parades of shops and offices in Old Street, Caledonian Road, Barnsbury Road, Copenhagen Street, York Way, Prebend Street and the Nag’s Head shopping centre in Holloway are being sold to raise desperately needed cash for the council.
It emerged this week that after this latest sell-off – the third since 2003 – the council will have virtually no commercial assets left. Opposition Labour members are asking how cash will be raised in future.
Many hard-up traders warn that the sell-off will force them to close. They will have the chance to bid at auction for their properties but will be competing against property-hungry developers. If they lose out, they will face spiralling rent rises under a new landlord.
Labour group deputy leader Councillor Richard Greening called the sell-off a “disaster” for small businesses and accused the Lib Dems of being financially “imprudent”.
He said: “We know from last year’s £70million sell-off the valuations are unfair. Everyone was given a different price for their property, which bore no relation to the market.
“It’s terribly sad that this should happen at a time of impending recession when the traders are already struggling to survive.”
Cllr Greening added that, apart from a nominal figure of £27million, the Lib Dems so far had not provided any financial analysis of the sell-off.
He said: “We will now be asking questions about the long-term financial viability of the council. Once this lot has been sold off there are effectively no assets left to support any future capital programmes.
“They will use the cash raised from the sale to refurbish schools, the Sobell Centre and Finsbury Leisure Centre. But long term, what happens when the next leisure centre needs refurbishing? What else can they sell?”
In Caledonian Road, 15 shops are included in the sell-off, among them a café, barbers, Chinese takeaway, mini-supermarket, solicitor’s and funeral parlour.
“These council-owned shops represent the lifeblood of the community,” Labour councillor James Murray said. “They will never be able to match a developer who wants to buy them out.”
The Town Hall’s lone Green councillor, Katie Dawson, said: “It’s shortsighted and damaging to the community. It’s a kick in the teeth to small shops already struggling to survive against supermarkets.”
Traders’ campaigner Dale Barter bought his Amwell Street Veterinary Practice premises when the council sold 200 properties last year. He said: “It’s very different now to what it was even last year because the banks will not be quite as liberal as they may have been. The opportunity for local businesses to match the bid for their properties will be even more challenging.
He added: “Why are they selling at a time when the market is bottoming out without considering best value?”
Lib Dem council leader Councillor James Kempton said he did not think the council should be in the business of owning commercial property. “We were very encouraged by the number of people who were able to buy their premises last year,” he added. “Half of the properties were purchased by their owners.
“We hope to raise a great deal of money this time to be spent on schools and leisure centres and, let’s face it, Labour will criticise whatever we do.” Cllr Kempton said that traders with particular problems should contact the Town Hall. |
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