Council reaffirms decision to save £0.5 million a year by centralising offices

Wyre Forest District Council decided on Wednesday (23 February) to proceed with a project to build new offices to replace the council's four main office buildings in Stourport and Kidderminster.

Councillors have recognised again that the project is essential in order to save money and protect services. The business case forecasts that new offices on one site will save the Council more than £500,000 a year in running costs.

The new offices will reduce the Council's impact on the environment.  The offices will incorporate the latest in green technologies, such as ground source heat pumps.  It is predicted that it will reduce the Council's carbon dioxide emissions from accommodation by 85 per cent.  There will also be a big saving in time spent travelling between buildings.

Councillor John Campion, Leader of the Council, said: "I am very pleased that colleagues on the Council have confirmed that we will proceed with this important project. The decision to build new headquarters is based on careful and prudent financial planning reinforced by appropriate professional advice.

"The building will save us a large six figure sum each year, money which could be used to protect frontline services. This is critically important when Government funding for the Wyre Forest is being cut significantly. The project is not diverting money from services.  It is a capital investment project.

"New offices are central to our commitment to move forward and make savings. Having these offices will mean we will no longer be reliant on leased accommodation and will enable us to benefit from economies of scale. But it is not just about having a new building. It's about transforming the way we work to save money and make us more efficient. The new offices will provide a modern, open, flexible and collaborative environment for the Council's workforce where they can work more efficiently.

"There are economic benefits for the district too.  There will be an economic spin off, attracting investment into the area during the construction phase and offering employment and sub-contracting opportunities for local residents and companies. This is the single largest public sector investment planned for the Wyre Forest at present and provides an important fillip after the cancellation of the Building Schools for the Future programme. Local carpet manufacturers will have the chance to compete to supply their products for use within the building. We will look at the most cost-effective way to dispose of surplus furniture, including use by local charities and community groups. The building will also have a café, providing a further business opportunity for a social enterprise or the private sector."

The £10.5m project is being funded from capital resources which, because of Government accounting rules, cannot be used to pay for revenue costs of front-line services. The council already holds over 70 per cent of the funding in UK-based banks, with the balance to be found from disposal of other assets including some of the office buildings that will be vacated. The disposal programme is being driven forward, with two properties being auctioned on 10 March.

The project now moves to its next phase, which is the award of the construction contract following a competitive tendering process. That decision is expected to be taken by Wyre Forest's Cabinet at its meeting on 15 March, although a public announcement about the successful bidder will not be made until the "stand still" period under European Union procurement rules has expired.

Date of issue - 24th February 2011