City of London faces £633.8m bill for new court complex

The City of London Corporation is facing a £633.8 million expenditure for the Salisbury Square development, a project that will deliver a new court complex and commercial space in the heart of the Square Mile. The Government will occupy the court facilities under a 125-year lease for a peppercorn rent, according to figures released by the Corporation. The development is scheduled to begin opening in 2027.

Deal struck in 2018

Corporation members approved the development and its budget in 2018. A Memorandum of Understanding detailing the 125-year lease with the Government was signed in 2019. The estimated total development cost includes site acquisition, compensation, planning, demolition, and the main works contract. The City of London Police will also establish its new headquarters at the Salisbury Square site, intended as a hub for tackling cyber and economic crime.

Concerns over cost and lease terms

Concerns have been raised by some Corporation members regarding the financial implications of the deal, particularly in light of potential cuts to the Corporation's grant funding. Deputy John Edwards stated that the assumption at the time of approval was that the facility would be leased in a similar manner to other Government buildings, not given away for minimal return. Deputy Chris Hayward, Policy Chair, acknowledged that the deal cannot be undone due to existing legal agreements but stated that future situations of this nature should be avoided.

The Salisbury Square development will house 18 specialist courts, consolidating the Square Mile's existing civic and magistrates' sites. While the Government and City of London Police are secured as tenants, no firms have yet signed for the commercial building. The Corporation is reportedly seeking a single occupier for the commercial premises or considering other potential tenants.

A City of London spokesperson described the development as a 'flagship City Corporation investment' that will create a 'world-class civic and justice hub'. Sarah Sackman KC MP, Minister for Courts and Legal Services, said the building represents a 'new generation of state-of-the-art courts' designed to deliver swifter justice.

What happens next

The Salisbury Square complex is scheduled to begin opening in 2027. The City of London Corporation will continue to manage the development and seek tenants for the commercial building.