Cash-strapped Derbyshire council moves closer to consider converting County Hall into a hotel, new homes and a new office site

The future of the majestic, council-owned County Hall, on Smedley Street, near the top of Bank Road, is one of many cost-saving proposals which the Conservative-led council is considering after it has estimated a forecast budget overspend of £33m for the 2023/24 financial year and a £39.5m budget shortfall for the subsequent 2024/25 financial year.

Derbyshire County Council’s Deputy Leader, Councillor Simon Spencer, said: “We had some very valuable insight from the hotel operators and developers following our engagement exercise last summer, and we’ve been able to use that information to develop a way forward.

“We want to give County Hall a new lease of life that will capitalise on the special nature of the historic buildings and the uniqueness of Matlock being on the fringe of one of the UK’s most popular tourist attractions – the Peak District.

“Our long-standing commitment to the town will remain. County Hall will become a building that will enhance the local economy.

“One-hundred-and-thirty new permanent jobs will be needed by the hotel, it also tackles the shortfall in quality hotel accommodation in the area and will bring an estimated boost of £56m to the economy of Matlock, and £150m to Derbyshire.”

The multi-million pound landmark council headquarters was the subject of a marketing exercise to consider various, new alternative uses for the grand building after the council stated that modern work practices mean the council is no longer using the site to its ‘full potential’ although it is hoped the authority will remain on site.

During the summer of 2023 expressions of interest were sought from developers, hotel operators and others for their ideas on options for the future of the historic complex of buildings, and the information gained has been used to develop an outline business case, which the council cabinet are set to consider.

After engaging with developers and hotel operators and working with specialist architects HLM Architects and Realestateworks over the past year, a preferred option for the whole County Hall complex has been developed.

This includes turning the south block of County Hall and the Winter Gardens into a hotel and events venue, creating new homes in the north block and the south west car park and building a new, low carbon office on the site to accommodate up to 500 council employees.

The council has stated that its overriding objective is to deliver the best outcome for the long-term use of the complex so that it contributes to the vitality of the town of Matlock and makes a significant ongoing contribution to the economy of the area.

County Hall is an iconic Grade ll listed building that was originally built between 1853 and 1886 as Smedley’s Hydropathic Establishment after Matlock was developed as a spa town following the discovery of thermal springs at nearby Matlock Bath in 1698.

It sits on a 5.8 hectare site with fantastic views overlooking Matlock and the Derwent Valley and already boasts many period, hotel-style features and decorative stained-glass windows as well as a restaurant, bar, lounge and meeting places.

Cllr Spencer explained that the potential redevelopment of County Hall will also save the council more than £130m in necessary repairs and update costs for the building.

He said: “Doing nothing with County Hall is not an option, the costs for running the building are just going up and up. The option that we are looking at will also save the council more than £130m in repairs to the County Hall buildings and in decarbonisation costs.

“We held a briefing session yesterday for all county councillors as I want to build a political consensus so that by working together we can make this project a success.”

It is hoped investors will be attracted by the council’s proud claim that the Peak District and Derbyshire tourism industry already generates £1.9bn for the local economy supporting 31,000 jobs and attracting 35m visitors annually.

Derbyshire County Council’s cabinet will consider – at its cabinet meeting on January 11 – the cost-savings proposals report which is asking for approval to redevelop County Hall, in Matlock.

If the proposals are approved work will continue over the coming months and years to develop the project.

The report features a number of budget cost-saving proposals including possible changes which are likely to affect the elderly, disabled and children if they get the go-ahead in an effort to set and balance its 2024/25 budget.

Derbyshire County Council’s scrutiny committee will further consider the overall budget saving proposals report at a meeting on January 22 and provide feedback before it is considered again by cabinet at a meeting on February 1 before going to a Full Council meeting on February 14.

Derbyshire County Council has not yet indicated any specific property value, possible sale or possible lease arrangement proposals for the County Hall building at this early stage of proceedings.