A decision to “buy out” BHS so Primark could come to Carlisle was backed unanimously by city councillors.

The council stumped up £1,397,128 as part of a £5 million deal to bring the retail giant to the former BHS unit in The Lanes.

Property giant F&C Reit, which has been keen to bring Primark to Carlisle as an anchor store contributed the majority of the payout.

The city council has described the move as “an investment” in the city.

The decision was taken behind closed doors because of commercial reasons, but The Cumberland News can reveal that it was approved by every single councillor.

City council leader Colin Glover said: “When it went to council no-one voted against it. It went to executive first, then full council.

“The downside of not doing that deal is you do not get Primark, and you don’t put the city on the map as a retail destination.”

The Lanes is owned by a company called Carlisle Shopping Centre Ltd, in which the council has a 23.66 per cent stake. The biggest partner is F&C Reit.

Despite the boost Primark is expected to bring to the city, an opposition councillor says the decision will have a lasting effect on council finances.

Gareth Ellis, deputy leader of the Conservative group, admits the money the council has borrowed means it won’t have the cash to spend on play areas and improvements to the Sands Centre.

Mr Ellis, who is also a councillor for Belah, says it will take between 12 and 15 years to get the money back – and for the council to break even.

He said: “Everyone wants more business to come to the city and Primark is the Marks & Spencer of today. It’s an anchor store and that’s important – but sometimes you can become too eager.”

Mr Glover said F&C Reit approached the council late last year with a proposal that would finally see the high street giant opening in The Lanes. Until now it has been confidential, for commercial reasons, but with the deal now signed he is able to explain the reasoning behind it.

“Late last year there was a report which came to council to say they were in negotiations with Primark,” he said.

“The units they were looking at were occupied by BHS. As part of the deal it would require us to give permission and contribute financially to the costs.

“The upside is it gives a higher profile to the shopping area and attract others. Primark is one of the top three in attracting other retailers because they like to be where there is high footfall.”

The council’s share of the cash is coming from its reserves and the sale of under-performing assets, not taxpayers, he stressed.

Mr Glover explained that it was a sound investment because the financial climate meant The Lanes had been under-performing “for some time”.

Primark will be paying more than 3.5 times the rent which was being paid for by BHS. Its name is also expected to draw other retailers into the city.

Mr Glover said councils are increasingly having to look at commercial investments to offset national cuts.

BHS ceased trading in Carlisle on January 9 with a loss of 50 jobs. Primark plans to open in the autumn, creating 144 posts.

Mr Glover said it was an opportunity too good to pass up.