Council has kept £1m of Newcastle United cash

Dec 20 2008 by Adrian Pearson, The Journal

CITY spending chiefs have been hoarding nearly £1m in transport cash taken from Newcastle United.

For the last eight years the club has handed over £233,000 every 12 months to Newcastle Council which should have gone towards solving parking problems in the streets around St James’s Park.

The deal was agreed by Newcastle United in exchange for the council granting planning permission for an extension at the ground.

The club thought the cash would be spent on public transport improvements in a bid to stop motorists clogging up streets on match days.

Almost £815,000 has been handed over, and with interest the council is sitting on a £900,000 cash pot.

Council bosses say legal rules prevented them from using the cash to pay for other services, leaving them with little option but to save the money.

A new agreement reached yesterday means the cash can now be spent on traffic wardens to enforce parking laws on match days.

Labour opposition leader Nick Forbes said he was astonished to see the opportunities wasted by council officers.

Mr Forbes said: “I’m gobsmacked that this amount of money was left in a bank account doing nothing whatsoever while residents were routinely having to complain to the council about parking around St James’s.

“Over the last 10 years residents have been calling on the council to solve the terrible parking problems that exist throughout the week and are much worse on match days.

“And every time we approached the council about this we were told there was no money available to solve this. How has it taken eight years and nearly £1m saved up before they would act?”

The agreement also means Newcastle City Council will take a bigger role in organising the successful Magpie Mover ticket scheme.

This allows match-day travel by public transport for supporters within Tyne and Wear at just £13 for the whole season.

It is hoped more fans heading to the city centre on match days will leave their cars at home and use buses and trains.

Harvey Emms, the council’s director of strategic housing, planning and transportation, said: “This new agreement means the council will now work with the club to manage transportation and parking issues.

“The club has paid the council a total of £815,000 under the terms of a legal section 106 agreement since planning permission for an extension to St James’s Park was granted eight years ago.

“The new single agreement means the held money can now be accessed and we will also receive an annual £233,000 payment from the club to manage initiatives like the Magpie Mover.”

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