STORY
Peterborough City Council has confirmed that contracts have been exchanged on a half-built hotel project which has stood unfinished since the COVID-19 pandemic. The development was abandoned after the companies behind it went into administration, leaving the council facing the possibility of a multimillion-pound loss.
Council leader Shabina Qayyum said a sale had been agreed on the site. LocalGov reported that some accounts suggest the authority could make a loss of around £13m on money lent to the developers before the project stalled.
The case has drawn attention to the financial risks faced by councils involved in commercial investment and regeneration schemes. It comes at a time when many local authorities are under pressure over borrowing, capital projects and the long-term sustainability of their finances.