Concerns over coronavirus impact on flagship Sheffield city centre development

Back in April, Coun Julie Dore, Sheffield Council leader, signed off the latest Heart of the City II scheme - Block A which includes a 150-room Radisson Blu hotel.

The site includes Pinstone Street, Palatine Chambers and the old Gaumont building and former nightclub on the corner of Barker’s Pool and .Burgess Street.

Liberal Democrat councillors called-in the decision to be scrutinised but the committee voted against pausing the work.

Coun Terry Fox, council deputy leader, said: "This is not a punt on the 4.50 at Newmarket, it's a sensitive move forward".

Coun Martin Smith, shadow cabinet member for business, had three concerns.

He said: "This is a lot of money, £43 million.

“Physically it's the most prominent block in the whole development, so we have to get this right but the main reason is the economic impact of Covid-19.

"It warrants further scrutiny against the economic background we face, particularly about the potential impact on retail, leisure and hospitality which forms the core of the whole project, but especially Block A.

"I was surprised the decision was taken at the peak of the virus. We have paused other aspects of Heart of the City II, so it's not unreasonable to do the same with this."

Senior Labour councillors and officers said they took regular advice about changing situations and decisions were carefully considered.

Coun Fox said: “I understand why members are nervous about where we are going at this moment in time, but all the way through we have taken a prudent approach and the leader took this decision to show our ambition going forward.

“The numbers are huge and the council's budget has been shot but we are convinced this is right and we are fully behind the project.

“Over the next 12 months, there will be severe hits on the council's income with business rates, but we still have confidence in the city centre and we are willing to invest and create the jobs we need."

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