A MEDIA-led investigation has shown that Basildon Council had agreed to give McDonald's £1 million, using money from its housing budget, to open a new restaurant in the town.

The council's housing building company, Sempra Homes, agreed it would contribute £1 million towards the cost of building a new McDonald's in a Homebase car park in the borough once planning permission was achieved. 

An email from a senior manager at Sempra Homes, seen by the Local Democracy Reporting Service, was sent to council members, including the interim chief executive officer at the time, regarding the cash agreement.

The email states that Sempra Homes owns the land off London Road, Vange and that discussions were held with Starbucks and Costa, but Sempra decided "this was not a viable option to progress with the rental offered". The two coffee chains would have only paid around £70,000 in rent a year, compared to McDonald's which is offering £140,000.

A spokesman for Basildon Council called the matter "speculation" when approached for comment by the Local Democracy Reporting Service, saying the council had not "seen any of the original material referred to" in the email from Sempra to councillors on the deal.

The decision has been slammed by a senior councillor, who insists the money should have been spent on new council homes.

Cllr Kerry Smith, Independent councillor for housing, said: "We've got a housing crisis and the previous administration thought it was a smart idea to use £1 million to subsidise a very wealthy and successful company, it beggars belief. We are only seeing these plans by McDonald's because of the sweetener deal from the council.

"We should not be giving £1 million to the company; it is immoral. I've spoken to residents, and they are scratching their heads and feeling outraged about it. McDonald's is such a wealthy and successful company, why are we giving it £1million. We are approaching spending £3million this year on putting families in temporary accommodation and this money could have been used for new homes."

The email to councillors from Sempra Homes said: "McDonalds made an approach whereby they were willing to lease the completed unit for £140,000 [per year], be responsible for obtaining planning and redeveloping the site. Removing both planning and development risk. Sempra would contribute £1m towards the cost of the build once planning was achieved. Exchange of contracts took place between the parties on the 26 April 2024."

A Basildon Council spokesman said: "Plans for a drive-thru restaurant on London Road, Vange, were deferred at a meeting of Basildon Council's Planning Committee, pending additional consideration.

"We don't comment on speculation and haven't seen any of the original material referred to in this enquiry. Any concerns or allegations about Council decision-making need to be raised through formal mechanisms designed to assess and, if necessary, investigate and resolve them."

At a meeting on December 4, Basildon Council's planning committee deferred the plans for the new restaurant at the site off London Road, Vange, due to concerns about it being out of character and on greenbelt land.