By Joe Locker, Local Democracy Reporter
Nottingham City Council could sell its Loxley House headquarters as part of the authority’s plans to cut down its ‘flabbergasting’ costs.
The building on Station Street was bought by the Labour-run authority from finance company Capital One in 2009.
Opposition members have for years been questioning whether the council should abandon it amid its worsening financial problems.
Floors three and four of the office building have already been mothballed and put up for rent as part of plans to save £200,000 each year, after the council declared itself effectively bankrupt last November.
However, despite not using two floors the authority is reporting a net overspend of £522,000 in utilities due to increased costs from energy usage at Loxley House and the nearby Broad Marsh Car Park.
Almost £400,000 is also being spent preparing the vacant floors for rental purposes.
During an Executive Board meeting on Tuesday (December 17), the building’s future was brought into question.
Cllr Andrew Rule, who represents the Clifton West ward for the Nottingham Independents and Independent Group, said: “I see there’s an unexpected cost from Loxley House and the Broad Marsh Car Park.
“I expect part of this is due to the knock-on effect the district heating network’s increased charges.
“Nevertheless it is somewhat flabbergasting, given there are two vacant floors in Loxley House, that we’ve had an overspend of half a million pounds on utility costs.
“At the risk of sounding like a broken record, because it’s not the first time I’ve said it, is it not time to seriously think about abandoning Loxley House in its entirety, and redeploying council staffing to buildings in the community, like community centres?
“This would be particularly beneficial as it would create the opportunity for senior staff to develop a closer relationship with communities and see first-hand how decisions impact on the ground.”
The authority is still working to fill an overall in-year budget gap of more than £4m, after it increased from almost £3m earlier in the year.
This is despite the use of £41m in Exceptional Financial Support, an accounting mechanism granted by the Government to allow the council to use property sales to fund day-to-day costs.
To bring costs down and increase the council’s chances of setting a balanced budget each year, a review of its entire operational estate is currently taking place.
Nicki Jenkins, interim corporate director for growth and city development, said: “Loxley House is being considered as part of that process.
“We are looking to bring that forward in the next financial year.”
