Westminster City Council is leasing out a floor at its Victoria Street HQ partly as a result of reduced occupancy post-Covid.
The council has said it expects to generate £4 million in income over five years and at least £1.5m in savings from the lease, which has been taken on by the Government Property Agency.
A spokesperson added it will deliver value “for both the council and our residents”.
The plan to lease out the 11th floor of Westminster City Hall is included in a council paper detailing the local authority’s Evolving Workplace Programme.
The scheme is designed to deliver improvements to the council’s workspaces, which as well as its Victoria Street premises includes sites such as Lisson Grove.
A range of upgrades are currently before the relevant Cabinet member for approval and are costed at around £2m.
They include creating a specialised Customer Contact Centre at City Hall, refreshing the mezzanine and first floor at the Lisson Grove property and updating the third floor at Orchardson Street.
Areas such as Occupational Health in City Hall are also eyed-up for improvements, with the report stating: “The intention is to create a more welcoming facility with a pleasant waiting environment, fit-for-purpose doctor’s office and administrative room. The result should be staff more engaged with this service which will promote wellbeing.”
The report also notes how “due to reduced occupancy at City Hall” an ‘opportunity’ has been identified.
“In the first instance, the council will be entering into a lease agreement with a third party which will see them take a lease for the 11th floor at Westminster City Hall,” it reads.
“The lease will run for a period of five years. The lease will see new income to the council of £800,000 per annum and offer savings of circa £500,000 per annum.”
The council confirmed to the Local Democracy Reporting Service (LDRS) that the Government Property Agency has taken on the lease, which commenced on July 1.
Assuming approval by Cabinet Member for Finance and Council Reform, Cllr David Boothroyd, the upgrades are expected to begin this summer and continue throughout the year.
A Westminster City Council spokesperson said: “The Evolving Workplace Programme is about creating a modern, flexible working environment which supports our staff to fulfil their role and meet the needs of residents. Following extensive consultation, we’re introducing quieter spaces, better collaboration zones, and improved meeting facilities to help officers deliver the best possible service to our communities.
“Leasing one of the floors at our council office in Victoria to the Government Property Agency will generate £4m in income and at least £1.5m in savings over five years, delivering value for both the council and our residents.”
Ben Lynch is a Local Democracy Reporter covering the City of London, Hammersmith & Fulham, Westminster, and Kensington and Chelsea. A former contributor to Harrow Online, he reports on local government, housing, planning, transport and issues affecting communities across London.
