Council Pays Further £540k To Make High Street Premises Ready for Occupancy

Published on: 24 Oct, 2025
Updated on: 28 Oct, 2025

Former M&Co Premises, Godalming High Street. Google

Chris Caulfield

local democracy reporter

Another half a million pounds will be poured into a town centre redevelopment project that, supporters say, will boost the health and look of Godalming High Street.

Waverley Borough Council approved an extra £540,000 to continue fitting out the commercial unit at 69 High Street to pave the way for Loungers Ltd to take over.

It will also help clear the rear of the site for potential social housing – although no planning permission has been secured. Critics of the £5.4 million, and counting, restaurant and housing scheme say they will be “dead and buried” before the “vanity project” breaks even.

The council said that bringing a tenant to the vacant former Woolworths and M&Co High Street site will likely increase footfall and promote local spending.

It hopes Loungers Ltd, acting as an anchor tenant, will support both daytime and evening footfall and reinforce confidence in the town centre – according to papers presented to the meeting on Wednesday, October 22.

The two-stage project will see the restaurant built first, with the project’s money then allowing the construction of town-centre housing at the back of the site.

Cllr Mark Merryweather

Cllr Mark Merryweather, portfolio holder for finance, said: “Construction of the enabling commercial element will still be self-funding despite the eye watering economic headwinds we have all faced.”

He said the extra money reflected cost increases in the construction industry but was needed to complete the project in a way that remained financially viable and maintained the council’s commitment to social housing.

The commercial element, he said, was still self funding, despite the payback date being pushed back, and he added that rent will be paid at a rate in line with the market.

He said: “There are non-monetary and social benefits that the scheme will deliver. This is a long term investment in our community and for our community.

“We exist to serve not to profit and this project for the high street and meeting urgent, genuinely affordable housing needs is at the heart of that.”

Critics seized on the finances of the project, particularly after it was noted that the payback period, already listed as 47 years, was significantly longer than either the lease periods agreed.

The dangers, according to council documents, are that the tenant could exercise its break option after 10 years, or decide not to renew after 15 years, pushing the payback period back beyond 2072.

There were also questions over the need to finance the commercial unit given Godalming High Street vacancy rates are almost half the national average.

Cllr Lauren Atkins (Con, Bramley and Wonersh) said: “We’ve already committed £4.86 million on this site plus hold costs and tonight we are being asked for another £540,000 – and that is just for the commercial element.

“The social housing, the whole reason this project was justified, hasn’t even gone in for planning and is now undoubtedly economically unviable.”

She added: “We are throwing millions at one unit, and now we are told it’s even more money on a 15 year lease with a 10 year break and a 47 year payback. No rational or sane investor would accept that.”

Cllr Jane Austin

Cllr Jane Austin, leader of the Conservative group, labelled it a costly vanity project and said that it was the Waverley taxpayer footing the bill.

Cllr Peter Martin (Conservative: Godalming Holloway) added: “Almost all of us will be dead and buried before any return is made, even on the figures provided by the administration.”

Cllr George Hesse

Cllr George Hesse (Farnham Residents, Farnham Castle) countered that a council should be looking longer term and the wider project was more important than short term returns. He said: “It will eventually wipe its face in due course.

“All right, it’s long term but councils will be around looking after housing for people long term, so I don’t see that as a problem. Bringing housing into the heart of a town is a good thing, it brings residents in who can spend money in the local shops, and enlivens the town centre.

“It might not be what we want… but it’s people in the town, and the lights are on. You can’t leave a half completed project unfinished.”