THE council is setting aside more cash to subsidise Barons Quay after the pandemic led to a drop in the site's value. 

The move comes as a report to Cheshire West and Chester’s cabinet said financial pressures on the development had increased because some existing tenants had ceased trading, while the pipeline of future lettings had also been delayed due to Covid.

The report added that £71 million had been invested by the council in the scheme, with the plan to pay half of that back in the first 25 years, with the rest being recouped in ‘the longer term’.

The retail and leisure development is currently generating a small operating surplus of £200,000, but the report said this was not enough to fund its development costs.

The report said difficult trading conditions previously had already led the council to set aside £1.7m to plug the gap, but a biannual financial resilience review carried out by council officers found the gap had since grown due to falling value of the site.

The report added that to reflect this, an additional £160,000 had been included in the council's 2022-23 budget, raising the total amount the authority had set aside to £1.86m.

The Northwich Guardian asked to see the figures in the resilience review, but the council said the information contained was ‘commercially sensitive’.

A council spokesman added: “All high streets have been heavily impacted by the Covid-19 pandemic and landlords have seen substantial reductions in their revenue streams.

“The additional budget allowance referenced in the cabinet report is the council reflecting this increased risk in our budgets.

“This is an essential element of the council’s prudent approach to managing its finances to ensure the council continues to be well managed, and our budget position is sustainable in the years to come as we come out of the pandemic.”