Scheme will be council’s own ‘bankruptcy project’

An artist's impression of Pydar Square at the new Truro development

Cornwall Council has been warned the scheme to develop the Pydar area of Truro will be the its "own Thurrock Council bankruptcy project".

The comment was made in reference to the Essex authority declaring itself bankrupt - during a discussion about whether Cornwall's local authority spends an extra £10m to ensure the Pydar development goes ahead.

A recommendation was made to a full council meeting on Tuesday that the council's total capital programme be uplifted by £14.804m to include the £10m to ensure the stalled Pydar scheme continues.

The recommendation was approved by 52 votes for, 19 against, and with seven abstentions.

Falmouth University is due to be the anchor tenant at the Pydar redevelopment

Councillor David Harris, Conservative portfolio holder for resources of the Tory-led authority, said progress on Pydar had been affected by the Covid-19 pandemic, high interest rates, very large increases in building costs and additional requirements on buildings more than 18m (60ft) high.

He said there had been a mistake when the finances for the scheme were discussed by the council's cabinet last month.

“Since this went to cabinet, I’ve delved further into the numbers and have satisfied myself that this scheme works," Mr Harris said.

He added: "The possible charge to our revenue accounts on the basis that this money is funded by borrowing was mistakenly reported to cabinet as £1.3m.

"In fact, it’s a maximum of £600,000.”

'Money we haven't got'

Conservative councillor John Conway proposed the £10m for Pydar was removed from the capital budget uplift.

He said: "Pydar is something I believe we cannot afford at present.

"To approve £10m that wasn't in the budget we approved two months ago seems incredible.

"We have a balanced budget for 2024/25 which includes £14m coming from reserves.

"By the time we get to three years further, we've already got £74m a year coming out of reserves.

"That £74m is money we haven't got. We are likely to be going the way of Birmingham if we go along this route."

Council 'can't afford this'

Independent councillor Andrew Mitchell described the Pydar scheme as a "horrifying" project which had "run away" from council officers.

He said: "Cornwall Council can't afford this - I believe that, if we do this, this will be our own Thurrock Council bankruptcy project.

"I'm horrified to see this administration bring this forward only after a week ago saying that the rest of Cornwall will have 2,000 local community assets ripped from beneath their feet and yet we want to stick £10m into the Pydar scheme."

The cabinet portfolio holder for housing, Olly Monk, said the investment would allow the delivery of a hotel, student accommodation, and more than 300 homes - many of which, he said, would be "within the reach" of local people.

He said: "If each of those people spends £100 a week, it adds up to about £5.2m a year being spent in Truro at a time when many of our towns are facing viability issues to keep shops open.

"This will be a shot in the arm for the Truro economy and a shot in the arm for Cornwall."