We are not referring to the FTSE 100 but to the local Southport Market which on 18 th November 2025 reported its financial position to Councillors on the Scrutiny Committee.
In July 2012 Sefton Council re-opened Southport Market, having spent £3.3m to create space for some 50 market units which were managed by retail market consultants appointed by the Council.
Eight years later the Council decided the building required a further re-vamp and in 2020/2021spent £1.4m on adapting the Hall as a unique food and drink facility. Funding came from the Town Deal (£900k) and Liverpool City Region (£500). The new Market opened for business in July 2021.
The Council itself now manages the facility, which offers 7 hot food outlets, one dessert unit and a centrally located bar for drinks. The Market also has a large events space called The Extravaganza Room that can accommodate 200 people. The space is used for private hire and ticketed events and is also managed by the Council’s market team.
Food traders and the bar pay the Council a “turnover rent” rather than a set rent measured on square footage. This arrangement is apparently common practice in many food markets and allows the landlord to be rewarded the more successful the operation becomes. But, it also means that if the businesses fail to generate sufficient turnover then the income for the landlord (i.e Sefton Council) will be reduced.
After 4 years of trading, how is the market doing?
The data provided to Overview & Scrutiny Committee on 18 th November 2025 illustrates the market’s financial performance in its fourth year of trading.
INCOME TARGET - £537,000 OUT-TURN - £343,187
EXPENDITURE TARGET - £435,000 OUT-TURN - £493,844
TOTAL £102,000 - OUT-TURN - £150,657
The loss of £150,657 includes the full cost of utility services, some of which were re- charged to the occupants. However, even after re-charges the nett loss was £66,950 (plus borrowing costs) compared with a predicted profit of £102,000.
The report to Scrutiny Committee highlighted the difficult trading situation in the hospitality sector and reduced spending by customers. The report fails to mention of course the disastrous effect of the Labour Government’s budget which imposed unprecedented national insurance taxes on employers, which has been disastrous for the hospitality sector. The increase in energy costs will also have played a part in the losses incurred in this venture.
It is a concern that any recovery will take time and the Councillors have been alerted that Year 5 trading may not see a profit. Year 5 trading will also have to consider the major public realm works in the Market Quarter which has caused major disruption in the area, leading to the closure of several independent businesses. The lack of footfall in the Market Quarter has now led to a situation where the market remains closed on Mondays and Tuesdays to try and minimise operating costs.
Whilst the Southport Market team are developing a new business plan it is of concern that the residents of Sefton will be expected to act as bankers and underwrite the losses of this commercial venture for some time to come.
Yet again, this Labour Council has shown itself as being ill-equipped to manage commercial activities.
