Cost-cutting city council considers future of HQ

Loxley House's future was discussed at an executive board meeting

Nottingham City Council is considering the future of its headquarters as part of its plans to reduce costs.

Loxley House was bought by the Labour-run authority from finance company Capital One in 2009.

The third and fourth floors of the Station Street building have already been mothballed and put up for rent as part of plans to save £200,000 each year, after the council declared itself effectively bankrupt last November.

The Local Democracy Reporting Service (LDRS) said the authority is reporting a net overspend of £522,000 in utilities due to increased costs from energy usage at Loxley House and the nearby Broad Marsh car park.

'Being considered'

The building's future was brought into question at an executive board meeting on Tuesday, the LDRS said.

The council is still working to fill an overall in-year budget gap of more than £4m, after it increased from almost £3m earlier in the year.

This is despite the use of £41m in exceptional financial support, an accounting mechanism granted by the government to allow the council to use property sales to fund day-to-day costs.

To bring costs down and increase the council's chances of setting a balanced budget each year, a review of its entire operational estate is currently taking place.

Nicki Jenkins, interim corporate director for growth and city development, said: "Loxley House is being considered as part of that process.

"We are looking to bring that forward in the next financial year."