UK council slammed for blowing £15m on hotel that may never open | UK | News
A semi -built hotel in Peterborough has become a financial nightmare for the local council after pouring £ 15 million into the attempt. The Hilton Garden Inn, which is intended for the 160 -bedroom in Peterborough, is now an derelict shell on the banks of the Nene River, and progress has not been made for more than two years. Since the deserted site has become a paradise for “hundreds of pigeons”, local taxpayers are in their arms.
The nine -storey building, which is defined by the inhabitants as “an embarrassing eye and insult to Peterborough taxpayers”, is far from the luxury accommodation that should be. The hotel, which will open its doors in July 2019, saw that the construction has begun after the Council’s credit agreement, but hit a violent hanging between Covid-19 pandemi. Developers entering the management brought the construction to stop.
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The hotel, which was praised for “very hospitable staff and really good food”, has not yet hosted a single guests because the facility was unfinished.
In 2017, the Conservative Leadership Council, which approved the loan, has led to a worker minority administration since then.
“The building is still not over and is rapidly humiliated because it is not waterproof. Hundreds of calm pigeons. This is a complete disaster.”
Another went to social media to condemn the project as “an embarrassing surveillance and insult to Peterborough taxpayers”.
EY, an accounting company, has recently controlled the council’s finance and marked a “important risk” that the value of the hotel is less than 15 million £ less than £ 15 million. The audit report shows that the “expected credit loss” is taken into consideration.
It turned out that the Council financed the loan to developers who use money from a State Public Works Credit Board.
The unitary authority of the Peterborough Municipal Assembly is currently the budget deficit for the financial year of 2025-2026 is £ 23 million.
In order to prevent expenditures, the Council makes deductions in services, including reducing the opening hours at the City Museum and reducing the highway maintenance budget by 15%.
Dennis Jones, the leader of the Municipal Assembly, said: “The hotel is currently under the control of the managers. A report will go to the cabinet in the near future and determine the next steps to protect the Council’s interests and public wallet.”
