'Macho' council culture linked to pub purchase

The former Crown pub has fallen into significant disrepair

A report into Middlesbrough Council's purchase of a derelict pub suggests a "macho style of leadership" contributed to the acquisition.

In 2023, the authority paid £750,000 - 60% more than market value - for The Crown, which fell into disrepair after closing in 2015.

Auditors said in their report they could not ascertain if the council's decision to buy the property in Linthorpe Road was reasonable.

But the then mayor Andy Preston said buying the building was essential to attract investment.

The once popular nightspot is now cordoned off and crumbling.

Bought by Hong Kong registered Land Investments Limited in 2016, it has been empty since and is regarded by the council as an "eyesore" site.

In a decision led by Mr Preston, the council bought the pub in a deal that was completed quickly and without a structural survey.

An audit was ordered last summer by current chief executive Clive Heaphy.

Former Middlesbrough mayor Andy Preston

Published this week, the review criticises "unstructured discussions" that led to the sale and questions whether the purchase represents value for money.

Auditors could find no evidence of a business case, or of any negotiations on price prior to the sale.

Highlighting a lack of formalised arrangements, their report also raises concerns over the organisational culture in the council at the time.

It reveals some officers felt unable to challenge how decisions were made, with one saying the way the sale progressed was "consistent with the macho style of leadership in place".

Former chief executive Tony Parkinson told auditors the urgency to buy The Crown was driven by Mr Preston, who allegedly felt property deals took "too long".

Mr Parkinson claims the ex-mayor was also concerned about the potential for decisions to be "undone" following May 2023 elections.

'Pace is vital'

Mr Preston said he "stepped in" to buy the building to protect the town's history and prevent private owners letting it rot.

He said taking the building out of private ownership was essential to allow for the progress of public sector investment in the town centre.

He added: "In regeneration, as in life, moving at pace is vital.

"Sitting around waiting for great things to happen always leads to failure."

In response to the review, current mayor Chris Cooke said: "No plan, overpriced and unsafe.

"These words are enough to describe everything that was wrong with purchasing The Crown."

The auditors could not determine if purchasing the The Crown was reasonable or represented "best value".

They said the price and short timescale could be justified if the acquisition met key council priorities, but it was impossible to confirm if that was the case.

In a series of recommendations they highlighted a need for effective and transparent processes and said property acquisitions should be supported by full business plans, with discussions formally documented.

Auditors also recognised efforts regarding organisational culture at the council but said change "takes time".