Barnstaple shopping centre hit as two big retailers shut down

Income from the Green Lanes shopping centre in Barnstaple has been forecast to drop by the end of the year for North Devon Council after the loss of two major retailers.

Claire’s Accessories has gone into administration and the River Island store was one of 33 “underperforming” stores to close last month as part of major restructure of the firm.

Financial reports to the council’s strategy and resources committee on Monday said the net rental income was forecast to be lower by £206,000 because of these changes together with a rent review.

However Green Lanes, which was bought by the council in 2021 with a £8.2 million loan from the government’s Public Works Loan Board, has made more than £1 million profit since then which helped balance the budget.

Council finance officers said the drop in income was in line with original cash flow projections and would still cover the borrowing costs and asset management fees for the year. Business rates had also increased.

The shopping centre income for 2025/26 would be around £1.1 million at the end of the financial year with around £830,000 coming from retail and £380,000 from the car park.

There are 35 retail units in Green Lanes and it now includes a district council and police hub. Council officers are talking with a potential new occupant for one of the empty units, the committee was told.

Barnstaple Pannier Market income is down on the budget estimate by £74,000 and events income is forecast to be down by £40,000. 

A working group is reviewing the pannier market business plan and events income and will be working on identifying how to increase revenue activity.

Car parking income across the borough is down by 2.6 per cent this year, the report says.

North Devon Council is looking at how it can bridge budget gaps in the future with more commercial opportunities . It has balanced the budget for 2026/27 but is forecasting a budget shortfall of £1.3 million in 2027/28,

Chief finance officer Jon Trigg said borrowing money was not a bad thing if there were revenue opportunities to come on the back of it.

The council will be disbanded in 2028 as local government reorganisation takes effect and North Devon  becomes governed by a larger unitary authority. North Devon Council’s borrowing costs are expected to be £3.6 million at that point which will be passed onto the new authority.