Investigation reveals Bedford council spending £200k a year on an empty building

Documents obtained through Freedom of Information (FOI) requests confirm that the council signed the lease for 157 Midland Road, Bedford, on April 14, 2022, with the lease due to expire on March 31, 2027.

This leaves the council with nearly two more years of payments, unless an alternative plan is found.

The lease is a full repairing and insuring (FRI) lease, meaning the council is responsible for maintenance and upkeep, although it said its obligations are limited by a schedule of condition.

The council claims that appropriate surveys were undertaken before signing, and that no issues were flagged that would prevent its use for temporary accommodation.

However, a councillor told the LDRS that the building was immediately closed after another council department deemed it unfit for purpose.

The investigation found this was not entirely correct, as records show the building was used 100 times between April 2022 and March 2023.

The reason for the closure in 2023 remains unclear, and when asked for a breakdown of usage, the council declined to provide further details, citing commercial sensitivity.

Since then, the property has been left vacant, while the council continues to pay £160,000 in rent plus additional costs for insurance and maintenance, bringing the total expenditure to approximately £200,000 annually, according to an FOI response.

In response to questions about the cost of making the property fit for use again, the council refused to disclose financial details, arguing that the information is commercially sensitive.

“The council is currently negotiating with the lessor regarding the lease,” the FOI response stated.

“Therefore, information is exempt under section 43(2) of the Freedom of Information Act at the current time because it would be likely to prejudice the commercial interests of the council or the lessor.

“The council has considered whether, nevertheless, the release of the information would be in the public interest and has concluded that it would not be in the public interest to release the information at this time because it may disadvantage the council in its negotiations.”

Additionally, when asked who authorised the lease under the previous administration, the council simply stated that it was signed by an authorised signatory, providing little clarity on who should be held accountable for the decision.

The council also spent £5,000 on legal advice regarding the lease on March 23, 2024, but when asked in December about the outcome of this advice, the council said: “We are currently considering our legal position and are unable to comment.”

The building has now been added to the council’s Forward Plan of key decisions, which states that a decision is due in April.

However, the council has not shared further details on its plans for the lease or whether early termination is being considered.