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

The City of London Corporation has committed an estimated £633.8 million to the Salisbury Square development, a major project in the heart of the Square Mile that will deliver a new court complex and commercial building. The development, which includes 18 specialist courts and a new headquarters for the City of London Police, is set to begin opening in 2027.

Deal with Government criticised

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Concerns have been raised about the financial arrangement with the Government for the court facilities. The City of London Corporation entered into a 125-year lease agreement with the Government, under which the Government will pay only a peppercorn rent for the use of the courts. This agreement was made in 2018, the same year the Corporation agreed to the development and its budget. Deputy John Edwards highlighted the disparity between the significant expenditure by the Corporation and current government plans to reduce its grant funding. He stated that the original assumption was that the courts would be leased in a similar manner to other government buildings.

Chris Hayward, Policy Chair of the City of London Corporation, acknowledged that the deal cannot be undone due to existing legal agreements. He described the scheme as "a massive gift to the nation" but noted that many within the Corporation believe such large concessions are no longer feasible. He added that while the past cannot be changed, future situations of this nature should be prevented.

Commercial space yet to be let

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While the Government and City of London Police are secured as tenants for the court and police facilities respectively, no firms have yet signed agreements for the commercial building section of the development. It is understood that lease agreements for commercial properties are often finalised closer to or upon completion. The Corporation is reportedly seeking a single occupier for the entire commercial premises or considering other potential tenants interested in occupying a substantial portion of the space.

A spokesperson for the City of London Corporation described the Salisbury Square Development as a "flagship City Corporation investment" that will create a "world-class civic and justice hub." The Minister for Courts and Legal Services, Sarah Sackman KC MP, stated that the building is at the forefront of a new generation of state-of-the-art courts designed to deliver swifter justice.