A CASH-STRAPPED council needs to move out of its £39m headquarters that “swallows up a lot of” Slough’s money.

Max Caller, the lead commissioner who was sent in by government, said the local authority will “save a lot of money” if it parts ways with Observatory House in Windsor Road.

The council bought the six-storey building for £39m in 2018 with the idea to move all of its operations under one roof as well as sub-let two floors to other businesses to gain rental income.

But with the need to sell off up to £600m of assets, make £20m yearly savings, as well as little interest from companies to take up that rented floorspace, it has forced the council to find a new HQ.

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Council leader James Swindlehurst (Lab: Cippenham Green) confirmed they will “definitely” move out of Observatory House “at some point in the future” and are drawing up a strategy to possibly move its services to other parts of the borough, such as The Curve.

Speaking to the Local Democracy Reporting Service, Mr Caller said because Slough is needing to reduce its gargantuan £760m borrowing debt and bridge its £479m blackhole, it has to change its operating model and become the ‘right size’ for the town.

He said: “Members need to prioritise and think about what will Slough look like. Physically it won’t be any different – but in terms of the council, it has to be different.

“And that’s why getting out of Observatory House is important. This is a drain on the council and it’s a fixed cost that swallows up a lot of money just by being here.

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“If the council is not in this building, it will save a lot of money, but it will change its business.”

When asked if it was a financial mistake for the council to purchase Observatory House, the lead commissioner replied: “I think the council has come to that conclusion. I didn’t need to think it.”