In a significant move reflecting the post-COVID shift in working habits, Westminster City Council has leased out the 11th floor of its headquarters on Victoria Street.
The space, now occupied by the Government Property Agency, comes as part of wider efforts by the council to modernise operations and adapt to changing office occupancy levels.
The five-year lease deal is expected to bring in a total of £4 million in income and deliver savings of at least £1.5 million, according to council estimates.
A spokesperson for the council said the arrangement will deliver value “for both the council and our residents.”
Evolving Workplace Strategy
The decision to lease out part of City Hall has been detailed in a council paper under the Evolving Workplace Programme, a strategic initiative designed to revamp the council’s office environment across several locations, including Lisson Grove and Orchardson Street.
Key elements of the programme include:
- A new Customer Contact Centre at City Hall
- Refreshed interiors at Lisson Grove’s mezzanine and first floor
- An upgraded third floor at Orchardson Street
Also under consideration are improvements to the Occupational Health area within City Hall. The report highlights intentions to transform the space into “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.”
With hybrid work becoming the norm, Westminster City Council is reshaping its office footprint, turning unused space into revenue while investing in modern, staff-friendly workspaces.
Leasing Deal Locked In
The lease officially began on 1 July, with the Government Property Agency taking up residence on the 11th floor. The arrangement provides the council with £800,000 in annual income and will cut costs by around £500,000 each year.
The council sees this as more than just a financial decision. It’s about responding to a new era of working and making better use of public assets.
Modernising for the Future
Councillor David Boothroyd, Cabinet Member for Finance and Council Reform, is expected to green-light the workspace upgrades. Work is scheduled to begin this summer and continue through the year.
A spokesperson added: “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.”
As councils across the UK grapple with rising costs and changing workplace dynamics, Westminster’s move may well serve as a blueprint for others looking to balance budgets while futureproofing their operations.
