Plans to purchase the former Lloyds Bank building on Bedford High Street have been scrapped by Bedford Borough Council, amid ongoing financial pressure and questions over the future of a major regeneration scheme.
The £1.375m acquisition, which was approved in December 2024 as part of the proposed Mayes Yard development, has now been formally cancelled.
A decision notice signed off by Mayor Tom Wootton (Conservative) yesterday (14 August) and published today confirms the reversal.
According to the council, the change of course reflects “continuing uncertainty about the viability of the regeneration proposals” and the need to reassess financial priorities.
More than £1.56m had been earmarked for the building’s purchase, stamp duty, legal fees and maintenance, but this funding is now no longer required.
The decision will take effect from 26 August unless called in for scrutiny.
Mayes Yard ‘slow progress’
Progress on Mayes Yard has been slow, with no preferred development partner yet appointed.
Read: Open letter: Mayor Wootton, make Debenhams a legacy Bedford can be proud of
The council said it remains “fully committed” to town centre regeneration and could still intervene in the property market in future, including through voluntary acquisition or compulsory purchase powers — which the executive supported in principle last October.
Liberal Democrat Group Leader, Councillor Henry Vann, welcomed the U-turn, saying it showed “some sense has prevailed.”
“This is welcome news – it is good to see that finally some sense has prevailed on this decision,” he said. “We had consistently warned against this wasteful spending but the Mayor sadly ignored us and pushed ahead regardless.
“I am pleased therefore that he has eventually listened.
“However, it shouldn’t take warnings of effective bankruptcy to stop a two-year-long spending spree. We need to recognise this welcome decision is only one small step.
“There must be a complete end to new spending of taxpayers’ money from right now if the council is to avoid bankruptcy.”
The cancellation of the purchase is the latest development in a broader financial picture at the council, which is facing a projected £10m budget gap and recently received a critical financial resilience review from CIPFA.
Read: Bedford Borough Council told to tighten spending and boost income to avoid Section 114 notice
By John Guinn, Local Democracy Reporter
And Paul Hutchinson, Bedford Independent
