Stagecoach is being accused of holding up major plans to revive Stockport town centre, amid claims the bus company asking for too much money.

The issue is now being escalated by Stockport Council over fears more than £40m could be lost.

The Stockport 8 development is one of the largest town centre regeneration projects in the UK. It could see over £350m of investment, and include 1,300 homes as well as new businesses.

It is part of plans by Stockport Council to completely transform the town with thousands of new homes.

The development covers a large area to the west of the town's iconic railway viaduct between the now-finished Weir Mill scheme and the central railway station. Phase 1 of the scheme will include a mixed residential neighbourhood of 435 homes and 82 affordable properties.

It was hoped the first phase of the scheme would start construction in 2026 but the plans could now be delayed. This is because Stagecoach are asking for too much money in relation to their depots in the town centre, according to a new Stockport council report.

Cllr 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.

"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."

However 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.

"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 meeting on September 3 show the local authority want to buy two bus depot sites in the area to deliver both the first and third phases of the scheme. This is ahead of a cabinet decision on September 15.

Despite tenant Stagecoach agreeing in principle with the local authority, a 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 will 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'.

Now councillors at a scrutiny committee are expected to comment on the report before it goes to Stockport council's cabinet. Officers are asking for permission to take all necessary steps to acquire the site, including the possible use of compulsory purchase powers to buy it without Stagecoach's permission.

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."