NEARLY £7million of public money is set to be spent offsetting rents related to Wirral Council's £75m office blocks as well as scrapped plans for Birkenhead Market.

The money will come from reserves originally intended to support regeneration projects.

A new report published ahead of an economy, housing and regeneration committee meeting tomorrow (Wednesday, December 4) said £6.985m of Wirral Growth Company profits was expected to be used in the current financial year which runs up until March 2025.

The Wirral Growth Company is a joint venture between the local authority and developer Muse, with profits split between them.

When the company was set up, the intention was for any profits to be used to support regeneration plans and close funding gaps to enable projects to be delivered.

In 2021, it was agreed these would be directed towards the council's plan to build a new Birkenhead Market and homes on the site of the former House of Fraser on Grange Road.

Those plans were later scrapped in 2023 in favour of a former Argos location but the council had already spent around £1.5m on developing them.

Councillors in July that year also agreed to use of the profits to offset rents related to the council's new offices on Alice Ker Square which a report said "reduces the availability of these funds to contribute towards the market project."

The latest report in December 2024 said the nearly £7m will be used to cover final costs to exit the lease for the Cheshire Lines building where the council previously had its offices once talks have finished as well as "abortive Market costs, as well as Birkenhead Commercial District costs."

This will leave £2.168m remaining out of £9.153m of profits.

The first stage of the Birkenhead Commercial District with two new office blocks is one of the first projects delivered by Wirral Council as part of plans to regenerate Birkenhead town centre. The project was funded in advance which means that even if the council cannot let the buildings, it will still have to pay rent on them for 35 years.

Council reports previously said the local authority hoped to make a profit from ending its lease with Cheshire Lines as well as funding new tenants with a profit of around £500,000 if fully let. While the council has occupied one building, it has struggled to rent out space and faces a £3.9m bill next year.

The council could face further costs on the offices as well as the Pyramids and Grange Shopping Centres from service charges and costs across its whole estate. Current costs are "based on assessed charges at the start of the year and the actual costs is still awaited, which may impact the forecast."

The authority's budget for assets – the land and property it owns – is expecting to go £300,000 over budget due to a decline in commercial income and is £100,000 worse than expected.

The council said it is having ongoing discussions with tenants and regeneration schemes may bring "temporary disruption."

The council said renegotiated rents could impact things further.