Plans to turn Derbyshire council's Victorian HQ into hotel approved

Derbyshire County Council said it would save more than £130m in repairs

A council has approved its own plans to convert its historic headquarters into a hotel to save money.

Derbyshire County Council said less than a third of County Hall in Matlock was now used by staff since Covid-19.

Plans also include an events venue and residential homes, and to build a new office for up to 500 council staff.

The Conservative-led council said the move would save it more than £130m in necessary repairs and update costs for the building.

The council's cabinet voted in favour of a report supporting the conversion at a meeting on Thursday, the Local Democracy Reporting Service said.

Deputy leader Simon Spencer said the authority was no longer using the site to its full potential as the building's occupancy had reduced to about 30% since the pandemic and with new working patterns and staff working from home.

The council said it was no longer "financially sustainable" to stay in the building, which currently costs nearly £2m a year to run.

That cost is expected to rise to £3.3m annually in the future and the building had a £56m maintenance backlog, the report said.

Council leader Barry Lewis said the building was "quite expensive to run", adding: "It's the time to do something about that."

Cost-saving measure

The authority has estimated the proposed project would boost Matlock's economy by between £56m to £57m, and potentially give a £150m boost to the county.

It also said it would create 130 new hotel jobs and address a hotel accommodation shortfall in the area.

The project, which is to be considered at scrutiny meetings, is expected to take 10 years to deliver.

Mr Spencer, who is also the cabinet member for corporate services and budget, said it was "the right thing to do" to support the plans, adding it would bring the building back to its former glory.

"I am delighted to be able to bring this report to cabinet and it is the culmination of about 18 months of work," he added.

The proposals are one of many cost-saving measures by the council, which has estimated a £39.5m budget shortfall for the next financial year.

The authority is also facing a £33m budget overspend this financial year, which it said it was addressing with other cost-saving proposals.

The council has not yet indicated any specific property value, possible sale or possible lease arrangement proposals for County Hall.