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Council spends millions on HGV depot that cannot be used

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A Welsh council is paying millions of pounds to lease a lorry depot that has stood empty and unusable since it was procured. 

There is a person behind this text – not artificial intelligence. This material was entirely prepared by the editor, using their knowledge and experience.

A local authority in Wales is facing growing scrutiny after spending more than £3.2 million on an HGV depot that has never been used for its intended purpose, according to figures obtained via a Freedom of Information (FOI) request and reported by the BBC Local Democracy Reporting Service (LDRS).

The case has resurfaced at an awkward moment for Conwy County Borough Council, which has also acknowledged a £5.632 million remaining shortfall in its 2026/27 budget plans — a gap it says may require further measures including changes to council tax (a local household tax used to fund council services).

A depot meant for heavy vehicles — but never put into service

The building, in Mochdre near the north Wales coast, was intended to support the council’s operational fleet. However, it has not been brought into use as a base for heavy vehicles due to defects that meant the site could not function as planned, according to LDRS reporting.

The council says it is restricted in what it can say publicly because the matter is subject to ongoing litigation.

The FOI figures reported by LDRS indicate the cost has reached at least £3.2m, with spending including:

  • Rent: more than £2.23m paid so far
  • Consultants: over £700,000 for specialist support
  • Legal costs: roughly £290,000
  • Maintenance and utilities: additional running costs
  • Income: the council reported some income linked to the site, but the overall balance remains firmly negative

For readers outside the UK: this is not a one-off “build cost” story. The large share of the total relates to ongoing lease and operating costs — money that continues to flow even if a site cannot be used.

A long lease and a landlord linked to Conygar

The landlord is RR Sea Strand Limited. UK company records show it previously traded under the name Conygar Strand Limited, reflecting a link to the Conygar brand referenced in earlier reporting.

LDRS coverage describes the agreement as a long-term lease, with a break option in the early 2030s, meaning the council remains liable for substantial costs unless the dispute is resolved or the contract terms change.

The depot story is now being discussed against the backdrop of the council’s wider finances. Conwy Council has said it is working through options to close its 2026/27 funding gap, warning that the pressures facing local government are not unique to Conwy.

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