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Council set to cancel £460k owed by its own company

Henry DurandLocal Democracy reporter
News imageGoogle A number of connected buildings, including a Travelodge and The Light cinema, are set back from the grassy bank of a river. In the foreground, a bridge crosses the river.Google
Breckland Bridge's largest project has been the Thetford Riverside Leisure Complex, which opened in 2016

A council in Norfolk is expected to write off more than £450,000 it is owed by a property investment company it owns.

Breckland Council members are to vote on whether to cancel the debt belonging to the firm it created to build homes on small plots of land owned by the local authority.

According to a report, Breckland Bridge has generated about £3m for the council through housing, commercial and other schemes.

However, a series of setbacks – including an unfinished homes project – has left it unable to turn a profit.

News imageLDRS A light grey, two-storey office building with the words "Breckland Council" over the front main entrance.LDRS
Like a number of other councils, Breckland set up a company with the aim of generating more income

Set up in 2015, Breckland Bridge won an award for its development of Thetford's Riverside Leisure Complex.

But the report for the council's Conservative-run cabinet said its most recent project, a 21-home estate in Colkirk, near Fakenham, had suffered long delays.

The development was due to be completed by 2022 but has remained unfinished since the original construction firm collapsed into liquidation shortly after work began.

Although a new contractor has completed the first homes, the project is still ongoing and is forecast to lose £288,000.

The Local Democracy Reporting Service said Breckland Bridge owed a total of £515,455.

Almost £464,000 – including interest – is due to the council while the rest is owed to Land Group, which is a partner in the business.

The council has said writing off the loan would help Breckland Bridge move towards a new business model, focused on selling land to developers rather than building homes directly.

Projects in the pipeline over the next five years include sites in Litcham, Banham and Kenninghall.

The proposal to clear the debt has also been influenced by local government reorganisation, which will see Breckland Council abolished and replaced by a new authority.

Council officers argue that clearing the debt now will benefit the future council and taxpayers in the long run.

The cabinet has been recommended to approve the write-off, with councillors set to make the decision on 12 January.

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