Disgraceful toilets, leaking buildings and the threat of huge repair bills - this is what traders working on one of Kent's most famous landmarks say they are dealing with.

Business operators from the thriving Margate Harbour Arm say the council-run toilets leave customers horrified and that on busy days raw sewage runs out onto the pier.

The facilities also shut at 8pm, meaning anyone drinking or eating in one of the bars or restaurants, has to walk all the way to the clock tower toilets on the other side of the harbour.

But traders say their concerns are falling on deaf ears and instead they claim landlord Thanet District Council is planning to increase service charges and introduce “unspecified” repair costs which could leave them bankrupt.

The authority took over the management of the asset this year from the previous manager Margate Harbour Arm Ltd, which leased the site for a nominal £1 annual rent and led its regeneration.

Funded with both private and public investment, including a £120,000 grant from the Margate Renewal Partnership, the scheme helped breathe new life into the arm, which boasts bars, restaurants and an art gallery.

But traders say despite this success, there have been ongoing issues with maintenance and that the asset is in a serious state of disrepair.

Mark Boxer, secretary of the recently-formed Harbour Arm Traders Association (HATA), says the Grade II-listed arm has deteriorated to such an extent that very few of the trading units are watertight. Meanwhile, there are signs of serious structural damage to the building’s walls and supporting piers, he adds.

“The toilets can only be described as a national disgrace and are clearly inadequate for the numbers of visitors,” Mr Boxer said.

“On busy days, there is often raw sewage running out onto the arm.

“However, having recently taken over control, TDC is now refusing to issue traders with new leases, unless they contain full external repair covenants and unspecified service charges, leaving them open to potential bankruptcy.

“The Harbour Arm is a listed building and repairs could potentially run into hundreds of thousands of pounds.

“It has open public access to its roof and traders are rightly asking why they should be responsible for the upkeep of a publicly-owned building, especially one over which they have no control.”

In a statement released by Thanet council in January this year, the authority stated it was taking the asset back in-house, and that new agreements with existing businesses would be on the same financial terms.

It also said it would allow “further development to take place to improve the toilets and allow businesses to thrive”.

But traders claim they are being “bullied” into accepting new terms which would leave them responsible for repairs and maintenance.

Michael Richardson, gallery owner and chairman of HATA, called the situation an “absolute disgrace”.

“Traders have had enough to contend with due to the ongoing Covid pandemic and they are now being asked to agree to unspecified future repair bills or they will not have their leases renewed,” he said.

“This isn’t just a platform for bars and restaurants - this structure protects the town from North Sea storm damage. We’ve been here in winter when the waves are crashing over the top.

“Yet the council wants us - the leaseholders - to sign an agreement making us responsible for the maintenance of a Grade II-listed, public building.”

Traders say they have also suggested a solution to the toilet problem, involving a prefab, vandal-proof toilet block, housed in a shipping container, that could be dropped and plugged in for under £30,000.

Carole Lane, owner of the Harbour Arms micropub, said: “Given the millions of pounds being poured into Dreamland, the Theatre Royal and other Margate attractions, surely they can spend £30,000 on a new a toilet block for the arm, especially now that they are receiving considerable rental and car parking income from the site.

“Trade can be erratic at the best of times, being seasonal and weather dependent. However, I can’t tell you the amount of business that I’m losing because of those disgusting toilets.

“Visitors are absolutely horrified and we quite often take the flack from people who don’t know that they are actually run by the council.”

Marcelo Rodrigues, head chef at Sargasso, says it’s embarrassing.

“We’ve had emails from people complaining about the toilets and I hear customers talking about how bad they are,” he said.

“We have people coming down from London to eat here and it doesn’t look very good when they have to then go and use those toilets.”

Traders say the Harbour Arm is a shining example of local regeneration, but that due to what is happening some business owners are considering walking away.

“Vacancy breeds vacancy,” said Mr Boxer.

“Once a few of the businesses start shutting down, footfall will inevitably decrease, and then you are locked in a vicious downward spiral.

“Most of the traders want to stay, however they cannot afford unlimited repair liabilities and it is only natural that they want TDC to commit to providing new toilets, before they will commit their futures to the arm.”

Thanet District Council declined to comment.

Read more: All the latest news from Thanet