Shopping centre owner was in debt to council as they offered him millions
Wiltshire Council was trying to hand over St Stephen's Car Park in Trowbridge, along with £2.5 million
Wiltshire Council knew a property developer was in debt to them at the same time as councillors were debating whether to hand him £2.5 million to demolish a shopping centre and car park, a leaked document seen by the Local Democracy Reporting Service has revealed.
But the owner of the Castle Place shopping centre in Trowbridge has insisted business rates debt is “a normal and routine aspect of property management.”
Back in December, Wiltshire Council’s Liberal Democrat-led cabinet was debating whether to hand £2.5 million to Tahir Ali to demolish St Stephen’s Place multi-storey car park in Trowbridge and the adjoining Castle Place shopping centre, which he owns, and redevelop the site for housing and leisure.
A deal needed to be struck because of a 50-year-old legal covenant between the car park owner – the council – and the owner of the shopping centre, which would prevent the council from closing or demolishing the car park without replacing it like-for-like.
The deal – the details of which are only known because secret briefing papers were leaked in October – would have given Mr Ali both sides of the covenant, allowing the regeneration scheme to take place.
During the December cabinet meeting, Conservative deputy group leader Cllr Dominic Muns asked whether business rates payable by Mr Ali were up to date. Cllr Gavin Grant, cabinet member for finance, said any debt owed would be pursued by the council.
The comments sparked a discussion by council officers – paid officials of the council – on the digital platform Teams. A screenshot of that conversation was posted to – and quickly removed from – a public Facebook group last week.
In the screenshot, a senior Wiltshire Council officer says: “Lots of chat going on in Cabinet today about the business rates payable on Castle Place and arrears (and subtle accusations towards TA).
“Can I ask you to work together on the arrears and make sure that TA knows that he must pay all monies owed please?”
A second officer responds: “Yes, (redacted) is trying to make contact to ask it to be paid ASAP. I have also asked him to see if it is not if we can deduct it from our payment to him (sic), but let’s hope it can get sorted sooner.”
A third says: “We have sent reminders, summonsed debts, and passed to enforcement agents so he is aware of the need to pay the bills.”
The first officer responds: “Thanks – lots of subtle accusations of the type of person the owner “is” and whether we are doing enough so this is about confidence but we do need to be mindful of the sensitivities of this type of “debts owed” information.
In a statement, Mr Ali told the Local Democracy Reporting Service: “Business rates are generally a private and confidential matter between the landlord or tenant and the relevant local authority and are not discussed in the public domain.
“However, in light of recent circumstances, there appear to be some inaccurate narratives circulating in the ether, and we are happy to provide clarity on the matter.
“Across our group of companies, we own and manage over one hundred properties and units. Our tenants include national brands such as Next plc, EE, Bank of Scotland, Costa Coffee, Holland & Barrett, among many others.
“A significant portion of our portfolio also supports hardworking community groups and independent sole traders — including restaurateurs, butchers, and hairdressers — with whom we work closely.
“Where necessary, we have reduced rents to help ensure they can continue trading during challenging economic periods, that includes many of the businesses that have traded at Castle Place.
“Given the scale and turnover of our tenant base, we regularly liaise with multiple local authorities and maintain ongoing discussions with business rates departments to ensure that liabilities are accurately assessed and properly settled.
“In some cases — particularly where the Valuation Office is involved — these discussions can extend for some time. This is a normal and routine aspect of property management for both landlords and tenants.
“I acknowledge that there are some outstanding business rates due to Wiltshire Council. We have been, and continue to be, working with the council to ensure any outstanding liabilities are agreed and will ensure that any outstanding balance will be paid very soon.
“Our Castle Place Shopping Centre investment remains a priority for us whether the site remains as it is and unchanged or is demolished and redeveloped. Our aim is to add value and secure an exciting future for Castle Place and the town centre either way.
“I value the ongoing collaboration with all stakeholders and the community as we work together to realise the full potential of Castle Place and its surroundings.”
Wiltshire Council was approached for comment. Perry Holmes, Wiltshire Council Corporate Director for Legal and Governance, told the LDRS: “It would be legally unacceptable to discuss an individual’s or organisation’s business rates affairs in the public domain.
“Access to this information is strictly limited to authorised council officials as required.
“These records are protected under data protection legislation, and we are legally required to maintain confidentiality.”