Machynlleth Town Council’s accounts have revealed the financial consequences of an exclusive council bar contract.

The accounts show £240 was made in bar bookings at the council-owned Y Plas building in the 2024-25 financial year.

This is compared to takings of £97,000 from the Caffi, £47,000 from office rentals and £12,000 from hall hire in the same building.

Last year several councillors exposed the bar contract drawn up in 2010 which gives local publican Lee Roberts exclusive use of the bar at £30 a pop - with no termination or amendment clause, allowing him to take home the entirety of the bar's profits.

Pubs and bars in the same town reported takings of between £5,000-15,000 during this year's Machynlleth Comedy Festival.

Commercial law expert David Gordon was “surprised the contract got this far” without anyone intervening in a contract which “commercially makes no sense”.

Gordon, partner at leading London commercial law firm Healys LLP, added: “If a lawyer drew up this contract without a review clause, that would be negligence.”

The legal consultant said it was “very unusual” in commercial contracts not to have ‘terms’ stating the time frame the contract would be for, “it’s 101 of drafting leases to add how long they’re supposed to last for... it’s very unusual to let someone lease a space without a term, even if it's 1,000 years from now”.

Regarding the commercial interests of the council, he commented: “If you’re a local authority, you need to maximise the yield from your property; it makes no sense commercially unless there was some community aspect to encourage employment or social activity.

“If it's the sole purpose of the building, it makes no sense not to be charging open market value [for the bar].”

Councillor Norma McCarten is this month tabling a motion to allow access to the bar and its profits for community fundraising events.

Councillor Kim Bryan, one of the councillors to first raise the issue, said: “It’s clear that the bar’s contract is the issue here.

“While other council income streams bring in tens of thousands, the bar contributes just £240.

“Although the bar’s full income isn’t publicly available, events such as the Comedy Festival and El Sueño music festival show its potential to generate additional revenue for the council.

“There are straightforward options available, including simply discussing with the leaseholder to amend the contract and make it fairer for the people of the town.

“I genuinely don’t understand the resistance to this; our council must manage its assets sustainably and in a way that benefits everyone in the town."

Machynlleth has the highest council tax rates in all of Powys, with the town council raising its precept (the portion of council tax that a local council requires to fund its services for the year) every year.

Paul McCue, one of the organisers of El Sueño Latin American Festival which took place earlier this month, called for improvements to be made to the bar: “El Sueño is a highlight in the calendar, bringing people from all over the world to Y Plas.

“It’s a brilliant opportunity to showcase the creativity and talent of our town.

I hope that future festivals will attract more local people.

“I’d love to see local beers, themed cocktails, and a real commitment to cutting out single-use plastics and improving recycling.

“Events like this should not only celebrate culture but also reflect our values as a community.”

Machynlleth Mayor Jeremy Paige hasn’t responded to requests for comment.

Councillor Gareth Jones, who was mayor when the contract was created, has been contacted for comment.

Both councillors were instrumental in addressing the three years of council missing accounts that were exposed in 2022, but haven’t spoken publicly about the bar contract.

Lee Roberts has consistently ignored requests to comment.