An ‘administrative mix-up’ has been blamed after a council cabinet member ‘incorrectly’ stated Time Square is recording a net loss of £6.4 million per year.

In a written reply to a Conservative councillor’s full council meeting question, the Labour-run council’s cabinet member for corporate finance, Cllr Denis Matthews, stated that the £142.5 million development in the town centre is ‘currently recording a net loss to the council of £6.4m per annum’.

The reply went on to say: “Time Square is currently valued at £69.2m (excludes Dolmans Lane which is not valued until 2023/24).

“However, this value is not an open market valuation. The council values its assets in accordance with International Financial Reporting Standards and the Royal Institution of Chartered Surveyors Red Book Global Standards.

“As such, alternative valuation methods to 'open market value' have been used, as is appropriate for this asset.”

However, a new reply was sent by Lynton Green, the council’s deputy chief executive, and director of corporate services – with the initial reply described as ‘incorrect’.

Cllr Ken Critchley, the Conservative finance spokesperson, said: “WBC's letter of correction dated 16 January now claims that there was a terrible mix up and, after what looks like some creative accounting, the new answer says that an element of the Time Square development is actually making a small operating surplus of £317k.

“However, in arriving at this number, WBC is answering a question that was not asked. We asked for the net return from the £142m Time Square investment, whereas the new answer deals with only some of the investment and gives the operating return which would normally exclude significant costs such as interest which could be in the region of £5m.

“The new answer sent by WBC looks like a shoddy exercise in trying to distance itself from the candour of the original text. We believe that the first figures sent for the net return and valuation of Time Square are much more credible. If WBC wants to show otherwise, then it should publish an open and transparent analysis.

“In our opinion Time Square looks like another entry on the growing list of financial fiascos for Warrington Borough Council. We’re asking whether this investment is an epitome of folly, or in other words a white elephant that is diverting council resources away from providing services to the people of Warrington.

“It’s shocking that these financial details have slipped out in a written answer as though the millions of pounds of public money potentially being lost is a trivial matter. Instead, the leader of the council should have issued a public statement explaining what has been going on.”

Cllr Matthews says the Labour administration is ‘fully committed to being open and transparent in the conduct of our town’s finances’.

He added: “Following an administrative mix up, a written response to submitted Question 4 from full council 4th December 2023 was issued to Cllr Chapman on or around the 8th January 2024.

“When the inaccuracy of the response issued was brought to my attention, I contacted Cllr Chapman on 12th January to make her aware and apologise for the error. I assured her that officers were working to provide the correct figures, and that an amended correct answer would be supplied.

“The corrected answer was sent to Cllr Chapman on the 16th January 2024, which confirmed that in the current year the council is forecasting an operating net surplus of £317,000 for Time Square.

“The Time Square development is, in my opinion, a fantastic asset that is enjoyed not only by residents of Warrington but those who live outside our great town. It serves as a meeting place for families and friends to enjoy the leisure and hospitality choices not just within its boundaries, but in the wider town centre. It brings in businesses and promotes employment. It is to any fair-minded observer, an outstanding achievement that promotes Warrington within our region.

“As new analysis by the Centre for Cities shows, the gross domestic household income of Warrington residents is over £8,400 lower than predicted in 2010. The Conservative government during this period have delivered soaring inflation, an NHS waiting list of over 7m, and a flatlining national economy that no longer serves the people who work within it.

“Decisions made by the Labour administration to invest in our town through flagship developments like Time Square have helped to make Warrington an attractive place to live and work.

“The success of Warrington should be celebrated, and I once again ask Conservative councillors to work constructively with the Labour administration to help deliver positive outcomes.”