Eastleigh Borough Council criticised for secrecy over Marks and Spencer contract

But a deal hatched between civic bosses in Eastleigh and Marks and Spencer to bring the High Street name to the town has caused controversy after the authority refused to say how much public money it is spending to support the scheme.

While the council admits it is to borrow a substantial sum to underpin the deal for the store to be attracted to council owned land, it has refused repeated requests from the Daily Echo to say how the money will be spent.

The project has sparked anger among traders in the town who say M&S may be getting a preferential deal from the council in a bid to lure them to the borough.

And opposition politicians are calling for council leader Keith House to reveal details of the contract.

The 16,000 foot food store will be build on land off the roundabout linking Southampton Road and Twyford Road and is expected to open in October this year, creating 50 new jobs.

Planners at the council - which only has an overall budget of £9million - gave the scheme the go ahead in February last year.

A recent statement from the council about its borrowing said: “Our estimated increase in borrowing of £28million is in the main due to new income generating assets at Fleming Park Leisure Centre and Marks & Spencer’s new Simply Go development.”

The Daily Echo has been told that the Liberal Democrat run council, led by Keith House, owns the site and Marks and Spencer will pay rent for it.

However, the council would not respond to the Echo’s requests for information about how it was involved in the site or how much money it was borrowing towards it.

When asked whether it was providing a reduced rent deal to attract the big name, again it would not comment.

A spokeswoman for Marks and Spencer confirmed that Eastleigh Borough Council owns the site and the chain will be paying rent for it.

But when asked about rent, she said Marks and Spencer never commented on store contract details.

Pip Smith, who co-owns Smith Butchers, in Market Street, said if there were special arrangements he would be “appalled”.

“If you have got the big names coming in and they’re not supporting or offering any help to independents I think it’s a bit of a poor show,” he added.

“Why do they deserve over and above others to be treated differently if they are?

“If people can go in there and park for nothing they will park there - that’s a massive advantage to them.”

Alan, who runs Anglo Vapours store, in Market Street, said: “I don’t think a company like Marks and Spencer should get preferential treatment.

“It’s not a level playing field and surely it should be disclosed.”

When approached by the Daily Echo to explain what the borrowed money was being spent on as part of the deal, a council spokesman would only say: “The council is pleased to be welcoming M&S to Eastleigh town centre.

"The new M&S Foodhall outlet will be another addition to the councils’ extensive and nationally acclaimed property portfolio that produces significant income each year and helps protect our services.”

When pressed on the issue of borrowing, the response was: “We will be happy to provide this information in due course.” Since then no information has been forthcoming.

Dia Chakravarty, Political Director at the TaxPayers’ Alliance, said: “There appears to be a lot of confusion around this arrangement.

“Residents are entitled to raise questions and ask for clarifications, which the council has a responsibility to address.

“At a time when councils across the country are having to find necessary savings, the authorities must take particular care when spending taxpayers’ money.”

PICTURED: The Ageas Bowl

THE row over the Marks and Spencer store is the latest to embroil the Liberal Democrat run authority which has come under fire for alack of transparency from both councillors and the town Tory MP Mims Davies.

Martin Lyon, UKIP county councillor for Bishopstoke, said he was surprised at the lack of information.

“If the council owns that land and is going to develop why wouldn’t they be open about it,” he said.

“It’s a good news story potentially.”

And Godfrey Olson, Conservative opposition leader, said: “I wish Eastleigh Borough Council would be more open and transparent - by not being transparent people sometimes draw the wrong conclusions.”

This comes after concern was raised about Eastleigh Borough Council’s level of borrowing, which by the end of this year is expected to stand at £154million.

However, when cabinet member Cllr Suzy Hamel voiced her concerns about levels of borrowing, Cllr House axed her from her position.

She went on to criticise the “iron rule” of Cllr House, even likening his position to that of Russian president Vladimir Putin.

The council says borrowing has been spent on acquiring a “significant income-generating property portfolio”.

It says investment in assets - principally property - will generate future income allowing it to protect frontline services in the face of Government cuts.

The council and Cllr House have also been under fire after failing to detail how nearly £1million was being cut from this year’s budget.

However, Cllr House has said budgets are only an estimate of what councils expect to spend in the future.

Council bosses have faced controversy about involvement in major projects in the past.

In 2012 they were criticised for promising to buy the Hilton Ageas hotel at the home of Hampshire Cricket for £27.4million, having bought the ground it sits on for £1.1million and the lease of the Ageas Bowl site for £6.5million.

The building of the hotel drew criticism from other hotels in the region that the council was setting up in opposition.

The project was halted for six months when the contractor went into administration but completed last year.