Cost cutting measures are being considered at Lincolnshire County Council’s business sites, one of which, the Hub in Holbeach is only half full.
The Food Enterprize Zone site is one of six centres designed for start ups and small businesses, writes Local Democracy Reporter Jamie Waller.
But they cost the council £300,000 a year to run.
Several options are being considered, including cutting out middle-men for repairs and offering empty space out to charities.
The council is also charging businesses 14p per kilowatt for electricity but is actually paying more than double that figure, leading to an around £100,000 deficit, a meeting of the Growth Scrutiny was told
Coun Liam Kelly executive member for Growth, told the committee on Tuesday (October 28) that the centres needed to cover their costs.
“We’ve identified the business centres losing money and aren’t washing their own face,” he said.
“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.”
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.
The Hub IN hOLBEACH opened three years ago.
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.
Coun 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.”
