Cornwall Council has been told to come clean and explain itself after selling a former pub at auction for £275,000 despite buying it for £1million.
The council bought the former General Wolfe pub on Bodmin Road in St Austell through its public services company Conserv, paying £1million for the property in 2020, to provide temporary housing.
In 2025, the Local Democracy Reporting Service declared the projected costs of conversion work had significantly increased, with work now set to cost around £2.5million.
Due to the rising costs, the building was put up for auction with a guide price of £150,000, and it sold last week for £275,000, a remarkable 72 per cent loss.
A new owner for the property has not yet been reported.
Benjamin Elks from the Taxpayers’ Alliance told GB News: “Taxpayers will be furious that a property bought for £1million with grand promises attached has now been sold at a massive loss.
“This is exactly the kind of speculative council spending that leaves residents footing the bill when projects go wrong.
“Rather than brushing this aside, Cornwall Council should explain how taxpayers ended up losing hundreds of thousands of pounds on this failed venture.”
The council bought the disused pub to turn into housing
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Cornwall Council leader Leigh Frost has dismissed suggestions an inquiry should be held into the council’s purchase of the building.
Speaking at a cabinet meeting last Wednesday, he said the former pub was “bought as part of a programme for much-needed temporary homes”.
He said due to “rising building inflation and things like Covid,” as well as the “quick deterioration of the building,” the plans to renovate the building did not proceed.
He added: “What is important is to try and find a new use for this building that’s having a detrimental effect on the town centre.
“I want the council to put all of its energy into this process rather than going over the same grounds over and over again.”
The pub closed more than 20 years ago and has fallen into disrepair within the community.
The building is listed as a Grade II site; however, Conserv confirmed last month a review is underway by the Department of Culture, Media & Sport, but it would not affect a sale.
The town’s Labour MP, Noah Law, had campaigned to get the building back in use and welcomed the auction decision, but said they were “not out of the woods” until the listing review is completed.
The Taxpayers Alliance has called for an explanation into the loss of money
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He said last month: “Whilst I am hopeful the council will find a suitable buyer with a positive vision for the building, they need to prepare for all eventualities.”
A Conserv spokesman said that Historic England was contacted about the listed status prior to the auction and confirmed that the property was allowed to be sold while under review.
“In light of that uncertainty, the decision was taken to proceed with marketing the property,” they said.
“The auctioneer has been made fully aware that a listing assessment is ongoing.”
The auction listing for the dilapidated building advised “due to the condition and safety concerns, internal viewings will be not be carried out.”