Council sells luxury resort back to its founder

Breckland Council bought Barnham Broom Hotel, Spa & Golf Club in 2007 for £7m

A luxury resort in Norfolk has been sold back to its founder by a local authority.

Breckland Council, which spent £7m on Barnham Broom Hotel, Spa & Golf Club, near Norwich, in 2007, has agreed a £6.9m deal with Colin Bothway.

It said that despite making a loss on the sale price, the business had made a profit of more than £2.7m for the authority during its period of ownership.

Council leader Sam Chapman-Allen said: "The figures show just what a good investment the golf club has been for this council and our residents."

The council said it had put profits from its investment into public services

However, according to the Bank of England's inflation calculator, £7m in 2007 is the equivalent of more than £11m today, based on the Consumer Price Index.

The authority had faced criticism over the purchase of the golf club, and there had long been speculation over its future.

The council spent £15,000 on legal advice to prevent commercial details being made public, according to the Local Democracy Reporting Service.

Mr Bothway said: "I'm delighted that we have now bought back the freehold and can recombine this with our operating business.

"I'd like to thank the council for being steadfast in its commitment to maintain our landlord and tenant relationship over a long period."

Sam Chapman-Allen said income from the business had been used to support people in hardship

Chapman-Allen said: "The steady stream of reliable income over nearly 20 years has played a big factor in helping Breckland maintain a good financial position compared with our peers and has enabled us to keep the pressure off local taxpayers as much as possible.

"The rent brought in by this and our other investments has played an important role in enabling us to go above and beyond in the services we provide."

He said the profits had helped the council support people facing isolation, loneliness, mental health issues, poverty and domestic abuse, and he added that the proceeds of the sale were being invested in temporary accommodation in the district.