Town hall rescue package agreed for key Blackpool assets

The cash lifeline means a £24m recovery fund will be created using cash from the council’s £200m business loans fund, to support key attractions and services including the Winter Gardens and Blackpool Transport.

Council leader Coun Lynn Williams approved the recommendation which will see loans made to the companies at a fixed rate over five years.

Five of the council’s eight wholly owned companies – Blackpool Transport, Blackpool Airport, Blackpool Entertainment Company (which manages the Winter Gardens), Blackpool Operating Company (which manages the Sandcastle), and Lancashire Management Operations (which oversees council owned student accommodation) – are in need of help.

They will each now have to deliver a business plan demonstrating how the loans will be repaid.

It was decided to take action following warnings the companies were facing losses totalling up to £20m after trade was badly hit by lockdown and Covid restrictions.

The three other town hall owned companies – Blackpool Housing Company, Blackpool Coastal Housing and Blackpool Waste Services – are so far not affected enough to need financial help.

The Covid Recovery Fund will comprise of up to £20m plus a 20 per cent contingency of £4m.

A report setting out the recommendation to form the fund had said without support it was “likely that some would not be able to recover within a reasonable timeframe.”

It is estimated the companies will need at least £14m to help them survive, with a worst case scenario of £20m, depending on the length of Covid restrictions, the amount of further Government grant support made available and the timeframe for business recovery.

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