Council pays £250k a year to power disused factory

St Martin's Park in Stamford was bought by South Kesteven District Council for £8m in 2020

A council has admitted it is spending £21,000 a month to keep a derelict factory supplied with electricity.

South Kesteven District Council (SKDC) bought the Barnack Road site in Stamford in 2020 with plans to redevelop it for homes, a retirement village, offices, workshops, shop and cafés.

But, at a finance and economic scrutiny committee meeting, the authority said the cost of maintaining the supply has now risen to £252,000 a year.

Officials said they continue to cover the costs so future owners or developers will not have to pay to have it restored.

The site, known as St Martin's Park, was previously the home of the Cummins generator factory.

Debbie Roberts, head of corporate projects, policy and performance, told the meeting: "The rise in costs was due to electricity prices increasing so the standing charge for this year has increased slightly."

In response, Councillor Max Sawyer said: "It amounts to more than a quarter of a million pounds a year for electricity we're not using."

The authority had previously announced plans to redevelop the site with homes, shops and cafés

The previous SKDC administration purchased the site for £8m in 2020, even though the land was valued at £6.2m at the time.

Earlier this year, the leader of SKDC, Ashley Baxter, said he hoped the authority would not lose money on the site and described the previous deal as "mishandled".

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