Member Article

Newcastle City Council consider plans for £45m investment to remodel Civic Centre HQ

Newcastle City Council’s Cabinet will today (22 July) consider plans for a £45m investment to remodel its Civic Centre HQ

The investment would reportedly be fully recovered together with an additional £32m savings which would be used to help safeguard council services.

Improving the Grade II listed Newcastle landmark would enhance it for future generations as well as creating a more efficient workplace for council staff. With a smaller workforce to accommodate, the council would be able to generate income by renting out surplus upgraded office space to other public bodies.

Energy savings, reduced maintenance bills and additional income will more than cover the costs of borrowing £45m to upgrade the building - including all interest charges on the loan. The remodelling would lead to a 30 per cent reduction in carbon emissions.

A failure to invest in the Civic Centre would cost the council £35.3m for basic repairs and maintenance to deal with the effects of wear and tear on an ageing building. This money would also have to be borrowed. There would be little or no opportunity to recover the costs, so the net effect would be an unfunded cost pressure on the council and a burden for local taxpayers.

Cllr Ged Bell, Cabinet Member for Investment and Development, said: “When we look at the hard facts there can be no doubt that we have to act now to invest in the Civic Centre to save money in the long run.

“By taking a bold and innovative decision to invest in the building - we can more than cover the costs and generate an additional saving which will be used to shield council services from public spending cuts.

“Doing nothing is not an option. The building would go into decline and council tax payers would be left to foot the bill.

“The numbers speak for themselves. Councils are facing mounting cost pressures because of ongoing cuts to public spending, and we have to take this opportunity generate savings to safeguard services and secure the future of a Newcastle landmark.”