Council HQ upgrade uncertain in light of devolution

New Forest District Council approved a £1.75m budget to upgrade its Appletree Court home in Lyndhurst last summer

The prospect of council mergers has prompted a rethink on plans for a major refurbishment of a local authority's headquarters.

New Forest District Council approved a £1.75m budget for the project at its Appletree Court home in Lyndhurst, Hampshire, last summer.

The plans involved the modernisation of the east wing, which would allow the south wing to be rented out to third parties.

The issue is set to be discussed at a panel meeting on 23 January, before it is brought to cabinet and full council meetings for approval.

The south wing letting was projected to deliver an income of £300,000 a year for the council.

But a report said that, further to the government's devolution agenda and the likely local government reorganisation across Hampshire, "concerns regarding the schemes ability to pay back the proposed investment in keeping with the original timeframe now exist".

"Therefore, it is recommended that council approve the removal of this previously approved scheme and adjust the council's medium-term financial plan accordingly, particularly the removal of the previously anticipated income stream," the report said.

It includes a recommendation to put £200,000 back in the capital programme to fund a reduced programme of works at Appletree Court.

Details on what this investment could include have not been published.

The district council's long-term future is uncertain following the government's English Devolution White Paper, which featured information on proposals for major local government reorganisation.

The current mix of two-tier systems and unitary authorities, including in Hampshire, would be replaced with larger unitary councils delivering all services.

The Ministry of Housing, Communities and Local Government expects councils to present initial proposals for reorganisation by March.