Council progresses its plans to support Northampton town centre

30 January 2025

West Northamptonshire Council (WNC) is progressing further plans to support Northampton town centre by working with the owners of the Grosvenor Shopping centre.

This includes a loan to the centre owners, Evolve Estates, to revamp the former New Look unit at its Market Square entrance, which will help keep high-street retailer H&M in town.

Councils are able to access funding at lower rates than commercial lenders, making the scheme more viable and potentially preventing a loss to the town’s retail landscape.

WNC is also working through changes to a lease for former offices at Belgrave House on Greyfriars, which is earmarked to be part of one of the biggest regeneration schemes in the town in decades.

“We are seeking to support the shopping centre’s owners, Evolve Estates, on several schemes which will improve its sustainability while also bringing in some revenue for the taxpayer.

“Councils up and down the country are having to invest millions of pounds of taxpayers’ money into their high streets just to stop decline.

“We have managed to attract significant Government funding for our schemes in recent years, including the Market Square redevelopment, a new NN Contemporary Art gallery, an extension to 78 Derngate , and a revamped Abington and Fish Street.

“All of these are attracting significant private sector investment in new housing and leisure schemes such STACK moving into the former Market Walk.

“The loans we will facilitate are backed with guarantees which will ensure we will get the investment back at no cost to the Council or taxpayers. That feels like a win-win for the area.

“We would like to be clear that the loans are to the owners of the shopping centre, rather than H&M itself.

“Alongside this, we have been working with Evolve to renegotiate a lease which is currently blocking our plans for the wider redevelopment of Northampton town centre through the Greyfriars scheme.”

Cllr Daniel Lister, Cabinet Member for Local Economy, Culture and Leisure

Borrowing for companies of any size has become increasingly challenging, and this arrangement provides immediate certainty to Evolve and confidence to H&M to progress the deal at speed, realising the opportunity of an enhanced H&M offer in the town.

Councils have two types of funding available - revenue and capital. Revenue can be used on services such as road repairs or social care, capital on the other hand can only be spent on assets like land and buildings but returns from those assets can also be used to support services. Loans are a form of capital funding.

The national retail climate is such that some high-profile high street brands such as H&M and Primark can require, as part of any lease, that fit-out costs are covered and rent free periods are in place. The wider benefits to the town are significant – increased footfall raises its profile to other investors and increases confidence with new and existing tenants.

“It is so important for the sustainability of the town that we continue the momentum that has started with Market Square. This loan should always be seen in the context of the overall ambition that provides a town centre which offers the best possible shopping experience, supported by an increasing leisure offer.”Cllr Daniel Lister, Cabinet Member for Local Economy, Culture and Leisure

In addition to increasing footfall in the area, the plan would continue work to consolidate the high street which was identified several years ago as being too large for the current retail climate.

Loan to Evolve for H&M unit

One of the proposals is for the Council to provide a loan to Evolve Estates to create a large, modern unit for H&M which is seeking to relocate from its store in Abington Street.

This would involve further significant due diligence including legal and financial checks before any loan agreement is signed, along with significant safeguards to protect the Council in the unlikely event of a failure to repay.

Lease changes to Belgrave House

The Council currently holds the lease for Belgrave House, which only allows development for key worker housing. That was its planned use by one of WNC’s predecessors, Northampton Borough Council, but this is no longer financially viable nor does WNC believe the building is suitable for this type of renovation.

With no change to potential use, WNC would be left maintaining a building which would otherwise remain undeveloped for the long term, at significant expense to taxpayers.

Proposed changes to the lease would remove the restrictions, allowing the Council to adapt the building to current needs and market demands. They would also allow sub-letting, offering more commercial options for the property.

This would support the wider plans to create direct links through from the area into the rest of Northampton town centre.

Additional proposals include:

• A further loan to Evolve to create flexible workspaces on the upper level of the centre, supporting remote working
• A period of free parking for a new leisure operator in the former Sainsbury’s unit, making it easier for visitors to enjoy the new facilities
• Investment of £375,000 to convert a disused large unit into micro shops on the centre's first floor, supporting new business startups and providing the council with income through profit-share

The plans were initially agreed at the Council’s cabinet on 10 December 2024 and, following call-in, were also approved by its Overview & Scrutiny Committee in January 2025.