Heart of the City 2 halted over fears about the economy following lockdown

The old Gaumont cinema at Barker's Pool is due to become a key focus of Heart of the City 2 retail, office and leisure development.

Back in April, Council Leader Julie Dore signed off construction work for Block A, which is in two parts.

There's the block fronting onto Pinstone Street with shops at the ground floor and offices above, known as Palatine Chambers, and the second block is the old Gaumont building with ground floor retail and former nightclub/cinema above.

The initial business case showed an "upper class" hotel with 150 rooms and performance space with fewer shops.

But Liberal Democrat councillors have called-in the decision to be scrutinised by a committee. They are worried that the economy, in particular the retail and hotel sector, could struggle following Covid-19, lockdown and social distancing.

Coun Martin Smith, shadow cabinet member for business, says he wants the scrutiny board to review the size and timing of the investment for Block A "in light of current economic circumstances, together with the associated project risks".

A scrutiny board will now discuss it at a meeting on Thursday.

Officers said Block A would create around 65 jobs during construction and 757 in operation.

In a report, they said: "The current appearance of the buildings is a barrier to the regeneration of the area. If works are not undertaken now the city centre could decline further and public opinion would be damaged.

"This will bring back into use current vacant units and contribute to the city centre retail, hotel and entertainment offer

"It will bring Sheffield‘s hotel offer in line with comparable cities and improve the attractiveness of the city centre as a place to stay, shop, live and work."