Stockport council is escalating a dispute with Stagecoach over the cost of two bus depots, warning that the bus company's demands could delay the £350m Stockport 8 regeneration project and risk losing £41.3m of public funding.
The Stockport 8 development, one of the UK's largest town centre regeneration schemes, would bring over £350m of investment, including 1,300 homes and new businesses. It forms part of Stockport Council's wider plans to transform the town with thousands of new homes.
Dispute over depot compensation
The development covers a large area west of the town's iconic railway viaduct, between the Weir Mill scheme and the central railway station. Phase 1 will include a mixed residential neighbourhood of 435 homes, including 82 affordable properties.
Construction was hoped to begin in 2026, but plans could now be delayed. According to a new Stockport council report, Stagecoach is asking for too much money in relation to its town centre depots.
Coun Micheala Meikle, Cabinet Member for Economy, Regeneration and Skills, said: "Our focus remains on reaching a negotiated outcome with the leaseholder, while protecting the delivery of a project that will bring new homes, jobs, investment and long-term benefits for Stockport and its people."
She added: "However, a scheme of this scale and importance cannot be left open to unnecessary delay. Seeking approval to prepare for the possible use of compulsory purchase powers ensures the council has the appropriate tools available, if they are ultimately needed, to keep this major regeneration project moving to schedule."
Stagecoach says talks are positive
A Stagecoach spokesperson said: "We remain engaged in ongoing, positive discussions with Stockport Metropolitan Borough Council regarding the voluntary surrender of an element of our lease in advance of its expiry in 2046."
The spokesperson added: "Both parties continue to work collaboratively to support local regeneration goals while ensuring the uninterrupted delivery of local bus services."
Documents brought before councillors at a September 3 meeting show the local authority wants to buy two bus depot sites to deliver both the first and third phases of the scheme, ahead of a cabinet decision on September 15.
Risk to public funding
Despite Stagecoach agreeing in principle with the local authority, the council report said no agreement had been reached "despite sustained efforts over a prolonged period", warning that "this is resulting in potential significant delays to the delivery of a major regeneration project for Stockport".
There are plans to relocate the bus depot further west near Cheadle, which would be owned by Transport for Greater Manchester. However, the council said Stagecoach's position "is that it will not enter into the required legal agreement unless it is a paid a sum that the council's advisers consider is significantly in excess of the sum to which it is entitled".
The scheme is being delivered in partnership with English Cities Fund, a joint venture made up of Homes England, Legal & General and Muse. In November 2025, £41.3m of Greater Manchester Combined Authority funding was awarded towards the scheme.
In the council report, officers said: "Not only does the ongoing uncertainty risk significant delays to the delivery of a key regeneration scheme, but it could also risk the loss of the significant public funding that has been secured for the development."
