Cost cuts loom at loss-making business centres

The Eventus business centre in Market Deeping is one of six run by Lincolnshire County Council

Cost-cutting measures at Lincolnshire County Council's loss-making business centres are being considered.

The facilities in Lincoln, Holbeach, Market Deeping, Skegness and Gainsborough are designed to help start-ups and small businesses.

According to the Local Democracy Reporting Service, the centres run by the Reform-led authority are operating at an annual £300,000 loss.

Councillor Liam Kelly, the executive member for growth, told a committee on Tuesday the centres needed to cover their costs.

Several options are being considered, including cutting out middle-men for repairs and offering empty space out to charities.

"We've identified the business centres losing money and aren't washing their own face," said Reform councillor Kelly.

"We're looking at all the costs associated and are moving forward with a plan to support businesses without impacting tenants, ensuring there's limited impact on the council taxpayer."

He added the council was "not interested in profit" from the centres but they needed to cover their operating costs.

One example given was the council pays 30p per kilowatt for electricity, but only charges tenants 14p, leading to about a £100,000 yearly deficit.

Kelly said the council was not considering selling off the business centres, and any increased costs for tenants would be phased in gradually.

The meeting was told there was a lack of space in Lincolnshire for start-ups looking for their first location.

Independent councillor Phil Dilks said: "I don't have problem with it costing council money to kick off a business.

"They have a high level of failure, and would welcome more support."

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