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Durham north MP queries cost of selling never-used £50m council HQ

BBC The new building being built on the riversideBBC
Council leader Amanda Hopgood said people were appalled with the former Labour-run council for building the HQ in the first place

An MP has demanded that a council disclose the cost to the taxpayer of a plan to sell its newly built and unused £50m headquarters.

Labour MP for Durham North Kevan Jones asked for answers on the proposed sale of The Sands in the city centre.

Last week, Durham County Council said it was looking to offload the building to Durham University to cut costs.

In a post on social media, Mr Jones said he was concerned about the move's impact on the council's finances.

The council said it wanted to sell the purpose-built headquarters and was considering relocating to three other sites.

Those are:

  • A new, smaller civic centre which will double up as a conference centre
  • Occupying council-owned offices already under construction at the site of the current County Hall
  • Refurbishing a Grade II-listed building on Front Street, Stanley

A final report on the proposed sale of The Sands will be presented to the cabinet on Wednesday.

'£14m in VAT'

In his open letter to the council leader, Mr Jones said: "I am concerned about the impact that this decision could have on the council's finances.

"I accept this decision is a political one. However, I do not think that in the interests of value for money for the taxpayers of County Durham, this decision can be taken without some explanation on the financial cost to the council."

Durham University said turning The Sands into a business school would protect more than 600 university jobs and create an additional 160.

Durham University Durham UniversityDurham University
Durham University wants to turn The Sands site into a business school

The planning and construction of the new headquarters on the banks of the River Wear began in 2019 when the council was under Labour control.

But when a new coalition of Conservatives, Liberal Democrats, Independents and a Green councillor took over in May last year it launched a review.

Mr Jones added: "I am led to believe that the council was aiming to sell the building to Durham University for approximately £70m.

"If this is the case, this would result in a potential cost to the council of £14m in VAT to the government."

He told the Local Democracy Reporting Service he had asked Lib Dem council leader Amanda Hopgood to confirm whether this was the case or if there was any "dispensation" to avoid the bill.

Ms Hopgood said: "Residents were quite rightly appalled at the decision of the previous Labour administration to build the Sands building.

"Our plan will generate a surplus and cut the cost of running the council, protect and create employment, kick-start regeneration, and ensure that across the county we get the jobs boost we need."

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