The local authority’s Conservative faction has obtained data showing Newport City Council has already paid out more than £4.5 million in support for the shopping centre arrangement. In exchange, the council has collected under £500,000 in revenue tied to how fully occupied Friars Walk in the town centre has been.

Cllr Matthew Evans, who heads the Conservative grouping on the council, expressed disbelief at the authority’s expenditure on the development and suggested those responsible for the decision had unlimited funds. Newport City Council had previously maintained that the Friars Walk agreement would prove financially advantageous overall, even if the maximum annual subsidy were distributed annually. No response was offered to Cllr Evans’s assertions.

In 2017, senior elected members approved a mechanism whereby the authority would supplement the shopping centre’s takings each year should rental income fall short. An upper limit of £500,000 annually was set for the 15-year term, potentially reaching £7.5 million in total contributions.

The council maintained this arrangement delivered optimal value, arguing it would remain financially better off despite making full subsidy payments, because it received an £8 million payment upon signing. Additionally, the conditions permit the authority to receive supplementary income during periods when the centre performs well. The figures obtained by Cllr Evans’s group indicate those income payments materialised only during the initial two years of the agreement.

Cllr Evans expressed his view that the funds had been wasted and could have been allocated more wisely elsewhere. He commented on how many additional social care employees could have been hired or road defects remedied with such sums. He recalled that when he challenged the cabinet’s original decision, officials assured him it was merely precautionary and highly unlikely to be utilised. He further pointed out that a distinct £6 million sum owed to the council for revamping the town’s indoor market had not been repaid according to schedule. He remarked that the authority appeared to possess limitless financial resources. Newport City Council was asked to address Cllr Evans’s concerns but had not provided a response prior to publication.