'Unprecedented challenges' contributing to Church Square Shopping Centre woes

The council purchased Church Square Shopping Centre for £26.6 million in October 2017 to give it greater control to shape the regeneration of the town centre.

Since then, a number of tenants have vacated properties and some tenancy renewals have been agreed at reduced rentals based upon rental market conditions, and to assist the council’s future redevelopment strategy.

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This has resulted in a budget pressure of £1.203m, according to the council’s latest financial monitoring report.

Of that figure, £786k is from a shortfall in rental income, while £417k is from  void rates/service charges.

The situation would have been worse if not for the council using £433k from the town centre reserve to mitigate the situation late last year.

The town centre reserve was set up in 2018-19 specifically to support the trading position of Church Square Shopping Centre but is now empty following the latest withdrawal.

A St Helens Council spokesman said: “Given the unprecedented challenges facing the retail sector, high streets and shopping centres up and down the country are currently not performing to their full potential.

“However, owning Church Square Shopping Centre is still an integral part of bringing forward new regeneration in St Helens town centre, and its performance will be managed in accordance with the medium to long term town centre strategy.

“In terms of the town centre strategy, the council is working towards a delivery partner to help deliver the physical regeneration improvements of St Helens town centre which in turn will help support the future performance of Church Square Shopping Centre.”

Church Square Shopping Centre is not the only element of the town centre that is losing money, as St Helens faces many of the same problems as traditional shopping areas across the UK.

Currently, St Helens Council has a rental share agreement with the landlord of the Hardshaw Centre.

The financial monitoring report says a budget pressure of £153k is projected against a “worsening retail market”, based on the latest figures available.

The report, which was discussed by the council’s audit and financial monitoring overview and scrutiny panel last week, says parking services is also facing a budget pressure of £409k.

John Ridgeon, the council’s business support manager, told councillors this is in part due to £121k in budgeted savings that have not been achieved in previous years.

He also said the loss of income has been caused by some of the parking initiatives launched by the council last year in an effort to boost the trading position.

Chalon Way Car Park

Mr Ridgeon said: “Part of that pressure, £121k is due to savings that have not been achieved from previous years.

“The other elements are down to two things really; one is obviously current use levels against anticipated usage levels.

“And the second factor is, there’s been some initiatives that have been implemented to try and support the retail sector in the town centre.

“So, there’s been things such as free parking on Sundays, concessionary rates on Saturdays and free parking on Saturdays in the run up to Christmas.

“And obviously, giving that concessionary or a free rate has had a negative impact in terms of the income coming in and has caused that budget pressure.”

The financial monitoring report says the town’s markets is also facing a budget pressure of £285k.

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Of that figure, £250k is due to a shortfall in income, while £35k is due to savings in relation to security services that have not been achieved.

In addition, rental income from industrial units was previously projecting a shortfall against income budget of £150k.

However, this has now been offset by the utilisation of a one-off developer’s contribution of £166k.