A debate over the future of the former Debenhams building on Mayes Yard has escalated following details published in Bedford Borough Council’s Executive Committee papers earlier this month.
Opposition councillors have raised concerns over the financial structure of the proposed development agreement, while the administration insists the project is necessary to revive the town centre.
Papers for a meeting of Bedford Borough Council’s Executive on Wednesday, 15 July 2026 (page 303) state, ‘The Developer pays the Council the Residual Land Value (RLV) as consideration for each lease. Structured as income payments rather than an upfront capital sum. Minimum: £1.’
Cllr Henry Vann, leader of the Liberal Democrats, says this is causing him concern.
“The Development Agreement states that the council is agreeing to sell for a minimum of £1 if the scheme is viable (and viable means £1).
“Therefore, the resource issues state that the scheme will be ‘at least revenue neutral’ – i.e. has the potential to make no money at all for council taxpayers,” he said.
Following news that Cityheart had been chosen as the preferred developer and that a £1 ‘peppercorn’ deal for the building was on the table, the mayor was asked to explain further what this may mean for council finances.
Speaking on BBC Three Counties Radio on Tuesday morning (28 July), Mayor Tom Wootton (Conservative) gave a public guarantee to presenter Gemma Hill that the building would not be sold for £1.
“It won’t be sold for a pound. We have to get the best consideration. We have absolutely guaranteed I am not going to sell it for a pound, and I just can’t think of anybody who would,” he said.
Agreement terms
The mayor has now issued a ‘detailed explanation’ regarding the legal structure of the Mayes Yard agreement and the valuation process.
Mayor Tom Wootton said: “The £1 figure contained within the Mayes Yard Development Agreement has been presented as though the Council has agreed to sell the former Debenhams building for £1, which is simply not correct.
“There is no agreed £1 sale of Debenhams.
“The agreement works on a phase-by-phase basis. Before any Council-owned land can be transferred to the developer, that individual phase must pass a detailed financial viability test.
“As part of that process, the Council will calculate the Residual Land Value, or RLV. This is the value of the land after the expected income from the development, construction costs, funding costs and the developer’s agreed return have been taken into account.
“The Council must then be satisfied that the amount it receives represents the best consideration reasonably obtainable, in other words, the market value required under section 123 of the Local Government Act 1972.
“The £1 figure is simply the minimum threshold included in the legal agreement. It means that a phase must produce a positive land value before the viability condition can be satisfied.
“It is not, as has been incorrectly presented, an agreed sale price, a valuation of the Debenhams building, the amount the Council expects to receive, and it is not permission to dispose of the building without a proper valuation for £1.”
Section 123
Land disposal regulations under Section 123 of the Local Government Act 1972 allow local councils to transfer property below market value if the deal delivers long-term social, economic or environmental well-being to the community.
Under official planning policy HOU2, any developer taking on the Mayes Yard block must fund the comprehensive masterplan, heritage assessments, access strategies and local infrastructure contributions.
A nominal £1 sale price may reflect the substantial financial liabilities of restoring a complex, derelict site that private investors previously refused to touch.
Regeneration focus
Addressing the wider political dispute surrounding the project, the mayor argued that criticisms risk delaying necessary investment in the Borough.
He said: “The people of Bedford want to see our town centre thriving again. That’s exactly what this project is about.
“It’s disappointing that the Liberal Democrats, Labour and Greens are trying to reduce a complex regeneration agreement to a misleading headline about ‘selling Debenhams for £1’.
“There is no agreed £1 sale of the former Debenhams building. The £1 figure is simply a technical minimum within a phased development agreement, not the price the Council expects to receive.
“The Council remains under a legal duty to secure the best consideration reasonably available. It will also receive a share of any additional profits if the development performs better than expected.
“The real choice is simple. We can continue moving forward with the regeneration of Mayes Yard and bring homes, businesses, visitors and investment back into Bedford town centre.
“Or we can allow political point-scoring to delay another major regeneration project.
“What’s particularly disappointing is that the opposition has spent years saying Bedford needs town centre regeneration.
“Now that a regeneration partner has been selected and the project is moving forward, they’re trying to undermine it with misleading claims rather than helping deliver the transformation residents want.
“The Liberal Democrats supported the Council buying Debenhams and backed regeneration of the site.
“It is disappointing that they are only choosing to oppose the project now that it is reaching the stage where regeneration can finally begin.
In December 2023, the Liberal Democrats celebrated the purchase of Debenhams, and “welcomed the decision”.
As part of a statement posted on the Bedford Borough Liberal Democrats’ website at the time, Cllr Christine McHugh (Liberal Democrats/Goldington) commented that they did not want to lose the chance to secure investment for Bedford town centre.
She said: “…We of course welcome this decision as we have been calling for action from the Council to ensure that the opportunity to develop Mayes Yard and the surrounding area as part of a vibrant town centre and the possibility to secure more investment for the Town Centre wouldn’t be lost…”
Building costs
The mayor has also pushed back on figures for the ongoing costs associated with maintaining the site.
Mayor Tom Wootton said: “The former Debenhams building is not costing £450,000 a year simply to stand empty. Part of the building is already being used as the What’s On Hub.
“The identified annual property costs are approximately: Utilities – around £30,000, Net business rates – around £55,700, Insurance – around £16,400, Security – around £3,000.
“That totals approximately £105,000 per year, plus borrowing costs and any essential maintenance.
“It would therefore be misleading to suggest there is a confirmed £450,000 annual cost simply for maintaining an empty building.”
However, the overall £450,000 annual figure was detailed during a Budget and Corporate Services Overview and Scrutiny Committee meeting in September 2025.
Read: ‘Empty’ Debenhams costing Bedford taxpayers half a million pounds each year
At that meeting, reports presented to the committee calculated the site’s total financial burden by combining three separate annual costs.
These included £117,000 for running the What’s On hub, £170,000 for essential upkeep, and £170,000 in borrowing costs on the original £1.9 million purchase price, as calculated by committee chair Cllr Michael Headley (Liberal Democrats/Putnoe).
Combining these sums totals £457,000 per year, which has since been rounded to £450,000.
While the mayor’s £105,000 figure covers basic standing and utility costs, the £450,000 figure reflects the wider financial burden to taxpayers, including debt interest and building upkeep.
