A deal to borrow more than £40 million to build a bespoke base for 500 Home Office workers in Stoke-on-Trent is being hailed as a great investment for the city.
Council chiefs have said that as well as the annual rent covering the loan repayments, the arrival of the jobs should bring an estimated £15 million more a year into the local economy.
Under the proposal, Stoke-on-Trent City Council would co-design the multi-storey building, to be located at the Smithfield development in Hanley, with the Government Property Agency.
Then around 200 Home Office employees currently based in the existing Two Smithfield office block would move to the new property as part of a 500-strong workforce.
Although a timeframe has not been confirmed, it is believed that the Home Office is looking to occupy the building and fill all 500 jobs by the end of 2025.
This is set to lead to hundreds of civil service career opportunities for local people in areas such as administration and policy.
Council Leader Cllr. Jane Ashworth, pictured above, said: “This is very good news and a great deal for the city.
“We are co-designing a building for use by the Home Office. They have very particular needs in terms of lay out and sustainability – so much so that a new building was required rather than an older one be re-purposed.
“We will not sign a deal unless it is profitable in terms of good jobs and financial safety – but 500 civil servant posts with promotion prospects is very good news for the city. It’s paying for itself.
“The 500 jobs are calculated to be worth £15 million a year to the city’s economy – it also has the knock-on effect of building confidence for existing local retailers and will potentially lead to more shops and services opening.
“It should also have a positive financial effect on the nearby Smithfield (city centre) multi-storey car park.”
Site visits have been held and negotiations are ongoing with the Government and Smithfield developer Genr8, but the council says a decision is due imminently.
The new Home Office base would become a neighbour to other businesses at Smithfield. These include the Hilton Garden Inn and Smithfield Works at the Clayworks apartment building.
Once the existing Home Office workforce move there, it would also free up the Two Smithfield building to be advertised to other prospective businesses.
Jane added: “We have learned the lessons of the past, we wouldn’t be doing this if we didn’t have a tenant lined up. It’s not a case of build it and hope.
“We would be borrowing just over £40 million to build this property but the annual rent from the Government would cover the annual costs before you take all other benefits into account.
“So, this is a very good investment and will go along way to helping the city’s finances.”
