Council aims to cut losses from business centres across the county, including Gainsborough
Cost-cutting measures at Lincolnshire County Council’s business centres are being considered in a bid to save money.
The authority runs six business centres, which are designed for start-ups and small businesses, including ones in Gainsborough, Lincoln, Holbeach and Market Deeping, along with other office and industrial space.
This currently costs the council around £300,000 more per year than it makes in order to support fledgling businesses, and the Reform-led authority is looking at ways to reduce the cost.
Several options are being considered, including cutting out middle-men for repairs and offering empty space out to charities.
Reform Councillor Liam Kelly, the executive member for Growth, told a committee on Tuesday, October 28, that the centres needed to cover their costs.
He said: “We’ve identified the business centres losing money and aren’t washing their own face.
“We’re looking at all the costs associated and are moving forward with a plan to support businesses without impacting tenants, ensuring there’s limited impact on the council taxpayer.”
He added the council is “not interested in profit” from the centres but the centres need to cover their costs.
One example given is the council pays 30p per kilowatt of electricity, but only charges tenants 14p, leading to around a £100,000 yearly deficit.
Centre managers could also be given the power to source repairs directly, and cut out middle-men.
Coun Kelly said that there was no consideration of selling off the business centres, and any increased costs for tenants would be phased in gradually.
Regeneration and Portfolio Manager Simon Wright told the meeting there should be “a balance between supporting economy and running a fiscally-responsible portfolio.”
The meeting was told there’s a lack of space in Lincolnshire for start-ups looking for their first location.
Independent Councillor Phil Dilks said: “I don’t have problem with it costing council money to kick off a business. They have a high level of failure, and would welcome more support.”
Around 92 per cent of the council’s premises are occupied, although the Hub in Holbeach is only half full according to council figures.