A council plan to buy the city’s community stadium could hit residents in the pocket, the Conservative Group has warned.
Salford Community Stadium is part-owned by the council, which is preparing to buy the remaining 50 percent from Peel. Salford City Mayor Paul Dennett and senior Labour councillors are expected to sign off on the purchase at a town hall cabinet meeting next week, confirming a deal to bring the stadium under council control after months of legal haggling.
But the opposition Conservative Group said Labour could hike council tax to pay for the purchase. Mr Dennett disputed the claim from Tory leader Robin Garrido and said the deal is a “sound business decision.”
Coun Garrido told the Local Democracy Reporting Service (LDRS): “People need to know exactly what it’s going to cost them.
“We’ve got libraries where money is not being spent and lots of other facilities around the city where they’re not spending money, and yet they can find a commitment to well over 30 million pounds to spend on rugby.
“It will lead to more pressure on council services, and I am really concerned that there will be a huge increase in council tax.”
Mr Garrido said he believes the new Labour government could lift the cap on how much councils can raise council tax without a referendum.
Currently, councils are able to lift council tax by five percent each year, which includes two percent for adult social care services.
The Ministry of Housing, Communities and Local Government was asked to comment on the claim.
Salford council believes buying the community stadium will open up opportunities for major investment and regeneration in the city.
Around £30 million of debt will be taken on by the council when the deal is completed as is expected, as well as £1.7m share equity held by the local authority in CosCos – the company which owns the stadium.
Mr Dennett said the debt is already in the council’s account as part-owners of the stadium, and that selling land around the ground for development will fund the deal.
The Salford City Mayor told the LDRS: “Salford Labour entirely dispute the opposition’s characterisation of the cost and lack of ambition for the City of Salford.
“We have a track record of making bold decisions and successfully overseeing landmark regeneration projects, such as Salford Quays and Media City.
“With full ownership over the stadium area, we are confident Salford Council’s experienced regeneration team will be able to unlock the full potential of the stadium and surrounding land.
“In other authorities we’ve seen library closures but in Salford we’ve invested in them. Under the Labour administration, Salford Council has been successful in attracting millions of pounds of investment into tennis, football, rugby union, athletics and theatre.
“My manifesto, which I was elected on for a third term with an increased majority, promised the people of Salford a Rugby Strategy, which this acquisition sits at the heart of
“The council is approaching this with its head and heart ensuring a sound business decision while passionately supporting the City’s rugby heritage.”
Salford council’s purchase of the stadium is set to be a boost to Salford Red Devils, who have faced financial difficulty and previously approached the council for loans.
Mr Dennett said the council owning the stadium will help the club “sweat the asset” and increase its revenue from the ground on match days.
However, the deal could yet face further delays before completion, with the Conservative group “likely” to call in the cabinet’s decision for further scrutiny.
