Council warns of urgent need to replace ageing HQ

Cardiff Council has published a detailed update on plans to replace its ageing County Hall, warning that the deteriorating condition of the current building means action is becoming increasingly urgent.

A report presented by the authority outlines progress on proposals to develop a new Core Office building, which would provide a smaller and more cost-effective headquarters for council staff.

Officials say the existing County Hall building has been identified as a high-risk liability due to structural deterioration, rising maintenance costs and the potential for major building failures that could disrupt council services.

In 2023 the council estimated that around £140 million of work would be required simply to keep the current building operational because of its size and age.

The report also confirms that the design and costs of the proposed new building have now been finalised following completion of the Pre-Contract Service Agreement (PCSA) stage.

Plans for the new office form part of a wider regeneration scheme for Atlantic Wharf in Cardiff Bay, which the council says could help attract investment and support the area’s creative industries.

The project is linked to the planned Indoor Arena development, as well as the Capella Production Studio partnership with the Wales Millennium Centre, which aims to support film and television production in the capital.

Council leaders say replacing County Hall has become the most financially viable option following a review of working practices introduced after the Covid-19 pandemic.

The shift to hybrid working prompted the authority to reassess its office requirements and consider alternatives to maintaining the large existing headquarters.

Leader of Cardiff Council Cllr Huw Thomas said the council had a responsibility to ensure public money was used efficiently.

“It remains incumbent on us as an administration to ensure that Cardiff Council operates as efficiently and as cost-effectively as possible, making prudent use of public funds at a time when pressures on our services continue to mount,” he said.

“As this latest report shows, the condition of our existing core office estate has now reached a point where the risks and costs of maintaining County Hall are simply unsustainable.

“With the PCSA work now complete, we have a clear, fixed-price route to deliver a smaller and more energy-efficient building that better supports our modern model of service delivery, reduces long-term costs and places far less strain on the Council’s budget compared with remaining in the current County Hall.”

Business case

The updated business case estimates that the new 120,000 square foot building could be delivered, although overall project costs have increased since earlier projections.

The peak annual revenue requirement is now expected to reach around £10 million per year, roughly £2.8 million higher than previously estimated.

Officials say the increase reflects greater clarity around project costs, including groundworks, utilities and remediation work, as well as financial assumptions linked to interest rates.

Despite this, construction costs for the office building itself have only risen by £3.8 million from the original procurement figure, largely due to detailed design and statutory requirements such as fire safety measures.

Cabinet Member for Investment and Development Cllr Russell Goodway said continuing to operate from County Hall posed increasing financial and operational risks.

“County Hall has reached the end of its operational life, and the longer we remain in the building, the greater the £140-million-plus maintenance backlog becomes,” he said.

“This updated report confirms that a new office building, procured at a fixed price, continues to offer the best value for money and the lowest risk.”

Cardiff Council’s Cabinet will consider the report on 19 March, following scrutiny by the Policy Review and Performance Committee on 16 March. If approved, the council will move forward with a development agreement and submit a planning application for the new building.