HULL – Hull’s opposition Labour group has called for a full investigation into how a local restaurant received £750,000 in public funding before closing less than a year later.
The restaurant, Iron Lillies, opened with the help of council funding intended to bring empty buildings back into use and create new jobs in the city centre. It closed at the start of the summer, saying it would reopen later in the year, but has remained shut. Around 35 jobs have been lost.
“The council chases individuals who fail to pay rent or council tax immediately, but when £750,000 appears to have been wasted, they remain silent”
Councillor Sharon Hofman, Deputy Labour group leader
Labour says no progress has been made in establishing what happened to the money or whether any will be recovered. Deputy group leader Councillor Sharon Hofman said the situation demanded full disclosure.
“The council chases individuals who fail to pay rent or council tax immediately, but when £750,000 appears to have been wasted, they remain silent,” she said. “It is not good enough for the Liberal Democrat council to do nothing after handing over this money while the development shuts down.
This funding is supposed to help kick-start regeneration, attract new jobs and boost the local economy. That appears not to have happened in this case and questions must be answered.”
The Beverley Review approached Hull City Council’s Liberal Democrat administration for a response. A party spokesperson said:
“It is shameful to see Labour politicians continually point score when their own national income tax hikes have clobbered business, not just across the city but across the country.
The Council are actively working with Iron Lillies to help support their business for a re-opening, the option to claw back funding is still possible and ensures no taxpayer cash can go to waste.”
Council officials met representatives from Iron Lillies on 1 October and are due to hold a follow-up meeting in the coming weeks to discuss plans for reopening.
“The Council are actively working with Iron Lillies to help support their business for a re-opening, the option to claw back funding is still possible and ensures no taxpayer cash can go to waste”
Hull City Liberal Democrat group
“The grant was part of a Government levelling-up scheme, approved under the previous Labour administration, which provided support to businesses seeking to bring disused buildings back into use.
The funding agreement includes a clawback mechanism, meaning money can be recovered if a business fails to meet its obligations.
The timeline for any clawback has been paused, but the Council could begin recovery proceedings if it is not satisfied with the company’s progress.
Iron Lillies has remained closed since early summer, despite previous statements that it intended to reopen later in the year. Both parties now await further developments as discussions between the Council and the business continue.
Feature image: Iron Lilies logo https://iron-lilies.com/