THE New Market car park in Chester is projected to bring in £1.5 million less than was forecast, Cheshire West and Chester Council documents have revealed.

Cabinet papers published in advance of the local authority's meeting on Wednesday, September 13, have revealed the borough is facing a £10.8 million overspend compared to its 2023/24 budget, with the majority of the overspend coming from inflationary and other cost pressures in the children's and adult's social care sector.

The papers also reveal the new Chester Northgate development is on course to raise £1.9 million less than was forecast for the 2023/24 financial year, with most of that shortfall (£1.5 million) coming from the New Market car park.

The car park on Hunter Street was opened on the site of the former bus interchange at the end of October 2022 and designed as a replacement for the old market and Forum car park off Princess Street, which opened in 1967 and has since closed.

It has capacity for 800 vehicles, a cycle hub and electric vehicle charging points, with minimum car parking prices from £3.50 for up to one hour, up to £13.50 for over five hours. A £4 evening rate is in place from 6pm.

But council papers have revealed a lower than anticipated usage of the car park, which has led to the budget shortfall.

Cheshire West and Chester Council papers say the income from Chester Northgate is expected to be £621k for 2023-24, compared to the budget forecast of £2.562 million.

The council adds: "It was anticipated that it would take some time for Northgate to build up its income and centrally held budget provision of £0.45m had been set aside against anticipated shortfalls, when this is considered, it reduces the shortfall in 2023-24 to £1.5m."

The authority added there had been delays in opening some of the units at the development, including the new Picturehouse cinema, which had its opening put back by about 12 months due to parent company Cineworld needing to exit Chapter 11 bankruptcy. Work on finishing the cinema has recommenced and the venue is due to open in late autumn.

Another of the delays was caused by an explosion which injured three contractors working on the Turtle Bay unit in April, which also damaged the unit. Work has recommenced on the site and Turtle Bay is said to be opening this year.

Council Cabinet papers added: "Except for two office suites and one food and beverage unit (which is currently under offer), all units are under legal contract to open progressively through the rest of the year with the aim of having a fully occupied development by spring 2024.

"The small number of remaining market stall voids are also being progressively filled. These actions are expected to increase footfall through the development, increasing revenue going forwards.

"Potential strategies to improve usage of the New Market car park are being explored as part of a city-wide approach to parking."

Leader of the Council, Cllr Louise Gittins, said of the £10.8 million budget overspend: “We have a four-year financial plan, linked to our priorities, and a strong track record of delivering financial sustainability and a balanced budget.

"However, the level of need for Children's and Adults’ social care support has increased significantly since we set the budget in February and we will always prioritise these vital services for our residents.

“This serious challenge is being faced by every council in the country. The funding available to councils must be addressed by Government and the Local Government Association is calling for urgent action. That said, we will always meet our responsibilities locally, we are a well-run council with a commitment to financial resilience and value for money.

“We’ve already identified £16.3 million of mitigations to improve the financial position this year and will continue, through strong financial management, to deliver a balanced budget over the coming months. We will also remain focused on the priorities that matter to residents and our core responsibilities throughout this challenging period.

“We are in challenging times, with some difficult decisions to be made, but our dedicated and talented workforce are committed to continuing to deliver high quality services to residents and partners.”

The issue will be discussed at the council's next Cabinet meeting on Wednesday, September 13, from 10am.