Guisborough: Office block to close in early end to PFI deal

Belmont House in Guisborough is being closed and sold

A council has been accused of "closing the door" on a town after it confirmed it is to shut one of its office blocks.

Redcar and Cleveland Borough Council will shut Belmont House in Guisborough when it terminates the Private Finance Initiative (PFI) deal that built it.

The council said there was no need for the office as staff work from home.

Guisborough councillor Anne Watts said the town should realign itself with North Yorkshire.

The council agreed a 25-year-long PFI contract worth more than £38m in 2002 to design, construct, finance and maintain Belmont House, Seafield House in Redcar and South Tees Business Centre in South Bank.

As of the end of 2021, the council still had about £14m left to pay in monthly instalments which increase with inflation, the Local Democracy Reporting Service said.

The cabinet agreed to pay a "buyout premium" to the PFI provider to end the contract in early 2023 with the authority saying the savings would be better value in the long run.

'Final act'

Support was sought from the government, which part-funded the deal, to end the contract and close Belmont House, which costs about £642,000 a year to run.

Guisborough was part of the North Riding of Yorkshire before a local government reorganisation in 1974 put it under the auspices of Cleveland County Council and then Redcar and Cleveland Council in 1996.

Ms Watts, an independent councillor, said the current council was neglecting Guisborough, adding: "Closing Belmont House is the council's final act of closing the door on Guisborough, but the people of Guisborough have always been strong and we have a beautiful town to fight for, even if we have to look to returning to North Yorkshire for a future."

A council spokeswoman said fewer staff were using Belmont House as a result of the council's hybrid working arrangements, which has meant more people working from home.

She said: "The site will be marketed with an open mind and we will assess the interest that comes back and any options that presents."

A cabinet report on ending the contract said the council would "retain a permanent presence in the town" in the form of Guisborough Library, where people can access a number of services.

Staff at Belmont House will be moved to other offices while Seafield House and the South Tees Business Centre will remain open as usual.