PM to open empty offices for fledgling firms

Prime Minister David Cameron is to announce the initiative as part of a new Business in You campaign he will launch during a visit to the North East today, where he will urge would-be entrepreneurs to start their own companies.

The Government’s central estate has an estimated 300 buildings in England with vacant space. The Government will offer as much of this space as possible to small businesses, giving them room to grow at low cost.

Mr Cameron will tell entrepreneurs at the launch: “The British Government has a huge stock of buildings at our disposal. The first priority for the ones we aren’t using is to sell them off, but in the meantime, many are going to be sitting idle.

“So let’s match the capacity we’ve got with the need that’s out there. Let’s provide office space where we can to those who can use it.”

Business leaders in Yorkshire have welcomed the scheme but raised questions about how it might affect commercial landlords, who are already struggling to find tenants.

James Newman, chairman of the Sheffield City Region Local Enterprise Partnership, said the move was an “excellent initiative to put public assets to work as long as it is well managed and controlled so as not to disrupt the existing marketplace, Enterprise Zone initiatives and proposed developments for similar space”.

He said decisions about where space might be made available should be made locally and not by Whitehall.

“It also needs to be for new, but commercially viable businesses and start-ups only rather than existing ones moving to take advantage of the short-term gains. Otherwise nothing is gained,” Mr Newman added.

Neil McLean, chairman of the Leeds City Region Local Enterprise Partnership, added: “As an area with 106,000 businesses, the majority of which are SMEs, a history of entrepreneurship and the LEP’s absolute commitment to unlocking the potential of the city region, this is good news. Creativity and commitment make a real difference.”

The Government said third sector organisations will manage and allocate the available spaces at low rates, and also provide business advice.

Each month, the campaign will focus on a different theme relating to start-ups and growth including exporting and employment.

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