Ellesmere eating spot still in red

A controversial taxpayer-funded restaurant at a Shropshire beauty spot, which underwent a £2 million revamp, has operated at a loss of almost £35,000 in its first year of trading, it emerged today.

The Boathouse Restaurant beside The Mere in Ellesmere is run by Shropshire Council.

Council officials today said, despite the financial loss, the restaurant is going "from strength to strength" and has seen income rise by 70 per cent in the last year.

Neil Willcox, head of leisure and outdoor recreation at Shropshire Council, said: "Visitor numbers are up and income up by 70 per cent over last year."

Bosses had forecast a first-year loss of just £785 when figures were released under Freedom of Information rules last summer.

But the scale of the actual loss, which has emerged after another FOI request this summer, is far greater.

Both FOI requests were made by Ellesmere resident Ken Dakin.

Accounts for the restaurant, jointly owned by Ellesmere Town Council, show between July 2009 and July this year, there was a net loss of £34,760.

Accounts seen by the Shropshire Star show gross expenditure for the period was £250,571, including £123,371 on staff costs.

But restaurant sales were just £212,610, while venue hire made a further £3,201.