THE leader of a debt-ridden council said the purchase of the multi-million-pound former Akzo Nobel site was “not a bad decision” despite it potentially skyrocketing its debt to over £1bn.

Two years ago, Slough Borough Council (SBC) bought the northern part of the brownfield site, which was historically owned by ICI, in Wexham Road from international real estate company Panattoni for £38m in order to develop it into a mix of housing and commercial.

Due to SBC’s financial crisis, which effectively declared bankruptcy in 2021, the council sold the site to a data centre company in excess of £100m, the biggest asset sale the local authority has made so far.

However, the government-appointed commissioners overseeing SBC’s recovery were highly critical of the council purchasing it in the first place in their second report into the recovery process, citing that the council had ‘no idea’ how it would fund the £250m needed to kickstart the project.

READ MORE: Slough Borough Council criticised over 'very slow' recovery

They also said the huge sale of the former Akzo Nobel, which makes out about a third of its £357m capitalisation requirement, was down to “luck”.

This would have increased SBC’s borrowing debt, which stands at £760m, to over £1bn, and ‘there would be no way to financial stability’. They also criticised the council for taking on a large project before knowing the financial risks involved or being shown any evidence of how the money will be paid back or how the project will be delivered.

Despite the damning report, council leader James Swindlehurst (Lab: Cippenham Green) said he still believes it was “not a bad decision” to buy the former Akzo Nobel site, which he added was a “steal of a purchase” for the council.

Slough Observer: Council leader James Swindlehurst (centre)Council leader James Swindlehurst (centre) (Image: Slough Borough Council)

Speaking at an overview and scrutiny meeting on Wednesday, March 22, Cllr Swindlehurst said: “What we would probably have done was sought a private partner, who would have brought investment to the table and develop it for us.

“So there was a different journey we could have written up in that way and got to a good outcome.

“I still don’t think the decision to acquire that site was a bad decision. I think the way it was written up and the documents that supported it were inadequate.

READ MORE: Slough Council's former Akzo Nobel site sells for £100m

“The fact that we didn’t have a financial plan to build it out, therefore, the report shouldn’t suggest that we should. That’s the issue there.

“I don’t think corporately we would not sign off that now. It was part of people living in their own silos and just presenting reports into the mix and going on with an agenda.

“It was led by the regeneration team. They wouldn’t be allowed to put a report like that on to a corporate agenda now.”