Sheffield Council under scrutiny after committing to multi-million pound offices in city centre

Last week the Labour Cabinet signed off a multi-million pound agreement for 100,000 square feet of office space at a new development called West Bar Square.

But Lib Dem councillors have called-in the decision as they believe such a “high value, speculative investment” requires more scrutiny, particularly of the risks involved.

West Bar Square promises to revitalise Riverside, Kelham and Castlegate with a new neighbourhood of Grade A office space, apartments, bars and restaurants and green space.

The council has taken on a 40 year lease for an office and officers admit there is a risk but say the council has a loan from the Joint European Support for Sustainable Investment in City Areas and very low rent payable to landlords Legal and General.

The Lib Dems are uneasy though and have taken the decision to the economic, environmental scrutiny for further review by councillors.

Martin Smith, shadow Cabinet member for business and investment, said: “At a time when many organisations are cutting the amount of office space they need for the future, it does seem unusual for the council to sign a 40 year rental agreement without a clear plan of who will actually use it.

“We welcome investment into this city but this deal was struck before Covid and there needs to be greater transparency on the financial risks for the city. It if goes wrong it will be our grandchildren who pick up the bill.”

Council officer Neil Jones told Cabinet that companies still wanted office space.

“It’s nonsense to think no one is going to work in offices in the future. There will definitely be demand for offices, but they need to be better quality, more flexible and of a very high standard, which is exactly what we’re delivering here.

“We’ve already had a call from one of the agents acting for us and there’s somebody potentially interested in taking a third of the building in one go.”

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