University halls example of council's commercial plans

On Wednesday Shropshire Council's cabinet agreed a commercial strategy which outlines a number of aims, including raising £50 million through the sale of land and assets, as well as generating up to £15 million more revenue over the next five to ten years.

The authority has held up its proposed Barker Street university halls plans as an example of the way it will look to increase the amount of money it brings in.

A report from council officer Tim Smith, head of business enterprise and commercial services states: "An example of an investment project is the construction of the second phase of students living accommodation for the University Centre Shrewsbury at the Tannery site in Shrewsbury town centre.

"The council is developing land it owns in partnership with a private company to create buildings which will generate a permanent yield for the council in terms of student and third party income, rent from retail use, education and training for students, additional jobs, research and intelligence for economic development and business rates for the council."

The authority says the commercial strategy is designed to help bridge a £37million budget gap predicted to open up by 2019/20.

The report says that the council cannot rely on more funding from government to solve its financial problems.

It states: "Whilst we shall continue to advocate to government for a fairer and better funding deal for the county, we recognise that Shropshire Council must take more control of its own destiny and become a more commercially focused and financially sustainable council. One which embraces a more commercial culture in terms of how we think and act to ensure we continue to deliver high quality services as efficiently and effectively as possible.

"This commercial strategy is closely aligned with the council’s new draft economic growth strategy in terms of the creation of new homes and jobs, the ambition to attract inward investment to the county, the need to provide the infrastructure and skills for business growth and to generate significant new income streams for the council. These two strategies along with the investment strategy and one public estate programme will identify through the use of land and property and the consideration of yield, return on investment and payback how best to leverage the council’s assets to achieve growth, service efficiencies and financial returns which can be used to protect and improve public services in the county."

Earlier this year Council Leader Malcolm Pate confirmed that the delayed Barker Street development would go ahead.

The plans, for halls which could house more than 200 students for University Centre Shrewsbury, involve demolishing the former sixth form college for the development.

It is understood that there could be an amendment to the proposal which would see some form of retail included in the development.

Speaking in January when he confirmed the plans would go ahead Councillor Pate said: “We have obviously got a great commitment to the university to provide accommodation as it grows. We started that off with Mardol House but we are now looking at other options to continue that in Shrewsbury.

“The university is key to our industrial strategy.

“If we are going to attract the investment into Shropshire we are going to have to be able to offer the skills base."

Shropshire Council has previously been responsible for converting Mardol House in the centre of Shrewsbury into student halls.

The building was refurbished at a cost of £3 million and provides accommodation for up to 86 students attending University Centre Shrewsbury.