LOW-tax campaigners have criticised controversial moves to use millions of pounds of public money to bail out the Rose Bowl.
As exclusively revealed in the Daily Echo, behind-the-scenes discussions have taken place about the possibility of Eastleigh Borough Council ploughing £6.5m in to the home of Hampshire cricket.
And in a confidential report – drawn up by the council’s corporate director – it was revealed how up to £30m of public cash could be used to fund a luxury hotel at the ground.
The report described the Rose Bowl’s financial situation as “perilous”
adding that a possible solution would be to buy the 999-year lease of the club’s land and buildings before leasing it back in exchange for annual rent.
But last night, Robert Oxley, campaign manager at the TaxPayers’ Alliance, said: “There’s absolutely no way that taxpayers should be stumping up the cash to bail out a cricket stadium.
“By buying the Rose Bowl the council is getting itself into the business of managing an international sports ground – they shouldn’t spend time and risk taxpayers’ money pretending they know how to.”
The confidential report, leaked to the Daily Echo, was written in September this year and gave a stark appraisal of the Rose Bowl’s finances.
Rose Bowl plc said the report reflected the financial circumstances in late August and a number of “material developments and changes” since then rendered the document “factually inaccurate”.
No proposals have yet been put forward by the authority and there is no time frame to do so.
Leader Keith House has hit back at the pressure group’s comments.
He told the Daily Echo: “If the Taxpayers’ Alliance are really interested in keeping taxes down they should appreciate Eastleigh Borough Council’s unequalled record of keeping Council Tax below inflation for eight years running with a second tax freeze next year.
“We’ve achieved this and protected services through genuine efficiencies alongside extra income from our property assets.”
As previously reported, a financial watchdog has already completed one investigation and is starting a second inquiry into £1.2m that has already been ploughed in to the Rose Bowl development by the council.
The Audit Commission is investigating whether £187,000 spent in the financial year 2010/2011 was legal.
It has already cleared council spending of £1.059m on the potential Rose Bowl development in the financial year 2009/2010 – finding that the expenditure was “lawfully incurred”.
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