The situation with Newport Council and its approach to business support in the city centre.

Last week, the South Wales Argus published a follow-up piece concerning a dispute over ground rent that involves the main leaseholder of the Chartist Tower, which includes the Mercure Hotel.

The publication’s headline stated that rising rents could kill off a Welsh city centre project.

There is clearly an argument that increasing ground rents are damaging enterprises within Newport’s central district.

However, on the other side of this debate, lengthening periods without rent payments and converting council loans into grants would expense taxpayers millions of pounds. That is the fundamental challenge. The council is ultimately funded by taxpayers.

Whenever your monthly direct debit for council tax leaves your bank account, it is probably your largest outgoing after your mortgage. Your council tax now represents a substantial sum.

Even when the council gathers your council tax, it remains your funds. You participate in council elections. You influence decisions about expenditure.

The council must ensure your money is allocated sensibly and used effectively.

For instance, in the city centre, a developer of a significant construction project has owed an outstanding £6 million council loan. This represents an enormous sum that could potentially revive the whole High Street.

£6 million could cover new paving, improved lighting columns, public green areas with planting, and additional street features.

Should the council cancel the aforementioned £6 million loan, it might be compelled to act similarly in other situations where disputes exist. The council ought not to favour one development while overlooking others.

A further inquiry was raised at a recent full council gathering regarding whether the £6 million loan has been repaid.

It should also be highlighted that most ground rents and sub-leases exist within the private sector, not solely with the council.

A middle-ground solution on ground rents should involve landlords participating fairly in any rent discussions. Nevertheless, simply prolonging rent-free periods and eliminating loans is, in my view, inadvisable.

Certainly, provide businesses with initial grants, temporary loans and early periods without rent. However, ultimately every enterprise must become self-sufficient.

The council has previously encountered difficulties with Friars Walk, where an annual £500,000 subsidy is paid to compensate for lost rental income from vacant retail spaces. This situation must not be repeated.

Newport Council is not a charitable organisation.

Michael Enea is a Conservative campaigner and blogger