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28th Oct, 2021

£80,000 losses at Rubicon Business Centre to come under the microscope

Correspondent 5th Nov, 2019 Updated: 5th Nov, 2019

THE Borough Council is to consider the future of the Rubicon Business Centre in Lakeside, which is losing £80,000 a year.

The authority owns the centres in Greenlands and Hemmings Road but leases the Rubicon Business Centre.

The future of all three will be discussed at Monday night’s meeting of the borough’s executive committee (November 11).

A report to that committee shows that while the Council-owned facilities make a surplus income from rents, Rubicon Business Centre is operating at a loss of £80,000 a year at an occupancy rate of 70 per cent.

Councillor will discuss a number of measures to address the issues around financial performance.

These include putting up the rents or exiting the facility.

Council Leader Matt Dormer said: “The Council remains committed to supporting local businesses and has put in place a number of measures delivered in partnership with the Greater Birmingham and Solihull Local Enterprise Partnership (LEP) and Worcestershire Business Central LEP Growth Hubs.

“In the past three years Redditch fledgling businesses have accessed £1.1m in grants to help them to scale-up and the provision of managed office space is part of a suite of support designed to help start-ups to grow.

“Rubicon Business Centre is not making financial sense to us so we need to reconsider its future whilst still supporting our local businesses.”

The council has to find £1.5million in savings by 2022/23 with £1.17m required in the next financial year after auditors Grant Thornton issued them with a ‘Section 24’ notice.

This warned that the council was on track to run completely out of money unless swift action was taken to balance the books.

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