REDCAR & Cleveland Borough Council’s cabinet has today (Tuesday 2 August) agreed to serve notice (bring to an early close) on a Private Finance Initiative (PFI) contract for three buildings.
The decision will see the gradual closure of Belmont House in Guisborough, with face-to-face council services continuing to be delivered from Guisborough Library. Belmont House and the land will now be marketed for sale or lease.
This will generate significant savings, which would be used to maintain and improve public services at a time when the Council is facing severe financial pressures.
The PFI contract, which was due to expire in 2027, covers Seafield House in Redcar, Belmont House in Guisborough and the South Tees Business Centre.
Seafield House and the South Tees Business Centre will remain open and operational as at present.
The Council submitted a business case to the Government, which part-funds the PFI contract, in January 2022, outlining the potential savings if notice was served early on the contract. Since then, the Government granted the Council its support.
The Council has adopted a hybrid-working model for staff whose role is suitable to working away from the office for part of the week and this means there is now significant surplus office capacity across its buildings.
A date for the closure of Belmont House has not yet been confirmed, but it will be a gradual process and the Council will work closely with staff who are currently based there to ensure they have an environment to perform their roles effectively.
Cllr Glyn Nightingale, Cabinet Member for Resources at the Council, said: “The decision to terminate the PFI contract will generate significant financial savings, not only through the gradual closure of Belmont House, but through reduced running, energy and management costs across all three buildings.
“It was important that residents of Guisborough still have face-to-face access to council services and the support they need from the Council. Guisborough Library is a great place for this as one of the council’s community hubs. There’s a customer service point where residents can make appointments to discuss Council Tax or Housing Benefits. There are IT facilities, Age UK digital drop-in sessions, baby sensory sessions, Barclays community banking, and much more. All this is signposted from Westgate.
“We will seek the best possible outcome for Belmont House itself to ensure this provides added value to Guisborough residents. We are working closely with affected staff to ensure they have an alternative working environment which suits them and enables them to maintain and improve services to the public.”