Westgate shoppers boost funding for the city

The centre attracted 19 million shoppers in its first year, and has now pumped more than £4 million into city council coffers.

The authority - which gave planning permission for the mammoth revamp in 2014 - says footfall is up 8.9 per cent in the city centre as a result, with Queen Street getting a massive 38 per cent boost.

How it was supposed to look: the early designs for new Westgate

But Cornmarket Street has taken a hit, with footfall dropping 4.6 per cent as some chains chose to relocate to the Westgate.

Now, after Land Securities, which runs shopping centres nationwide, announced profits of £42m for the six months ending September 30, the city council has confirmed that it is also benefitting from Westgate's success - by an additional £4m a year.

The funding will go into the council's general fund and could be used for a number of different purposes - including revamping the Covered Market, where a £3.1m refurbishment programme is under way.

Retail expert Keith Slater said: "It's good to hear that Westgate's financial success is being channelled through to the council and I would hope that money is now being directed to improving places like the Covered Market and Cornmarket Street.

"The market is looking better than it did earlier this year, with more tenants in it, but it's still a bit quaint and could be made to look a lot brighter and more welcoming with some real money invested in it."

Lord Mayor Colin Cook said: "This additional funding will certainly be a consideration in our budget plans which are currently being discussed and we will look at our opportunities to invest in the city centre."

The council estimates the rateable value of the Westgate to be £27.5m, with an estimated gross rates income for 2018/2019 of £13.6m - £10m higher a year than the amount generated by the centre before it was redeveloped.

The council gets to keep 40 per cent of he rateswith the remainder going to the Government, leaving the local authority with about £5.4m out of the £13.6m total.

This compares to the £1.2m of business rates income generated by the shopping centre before it was revamped.

In addition the council, as freeholder, is paid £2.4m in ground rent every year, which takes into account lost income from the old Westgate car park.

Ed Turner, Oxford City Council's deputy leader and board member for finance and asset management, said: "One year on from the opening of the new Westgate, the city is feeling the benefits – not just in terms of the boost to the local economy, the creation of a new retail quarter and the opening up of public spaces that link the city centre to the river – but also in the additional revenue it is providing to support the services provided for local residents.

"Given central Government’s ending of direct grant support, the business rates income we receive is more important than ever to help fund things like community centres, homeless hostel places and improvements to the Covered Market.”

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Brendan Hattam, general manager of Westgate Oxford, said the Westgate Oxford Alliance set out with a vision to transform the city for the better, creating a destination for tourists and residents alike.

He added: "So far, Westgate has created more than 3,000 jobs and generated an 8.9 per cent year-on-year rise in city centre footfall.

"We’re incredibly pleased with our positive contribution to Oxford, creating not just immediate jobs but a lasting legacy for the city.

"We look forward to continuing to work alongside the council for the benefit of Oxford and its residents in the future.”

There is 800,000sq ft of new retail floorspace at the Westgate Centre and Oxford now has one of the highest proportions of retail use of city centre commercial properties of any city - 48 per cent against an England and Wales city average of 26 per cent.

Shops at the Westgate Centre employ about 3,400 people - about 2,000 full-time workers, receiving a total of £29m in wages.

The shop units are about 97 per cent let, and Spanish fashion chain Zara opened a new store on Thursday.

Fashion brand Mango and Urban Outfitters are also due to open new stores.

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