Scottish taxpayers coughing up £3.7m running costs for half empty Government buildings

Victoria Quay

Taxpayers are footing a £3.7m bill for running flagship SNP Government buildings that are more than half empty.

Barely one third of staff worked in St Andrews House in November while the figure for Victoria Quay in Leith was 21pc.

Scottish Labour Finance spokesperson Michael Marra said: “To protect vital public services, the SNP Government must get its own house in order and cut down on waste, including reviewing how to save on running costs for ghost ship government buildings.”

The pandemic led to a surge in home working among public and private sector workers that continues to this day.

Business leaders believe it damages the wider economy as city centre firms rely on office staff for footfall.

Pre-covid figures show occupancy levels at SAH, which is where First Minister Humza Yousaf is based, stood at 83% in March 2020.

But the numbers plummeted during covid and they remain low.

Stats released by the Government cover staff attendance on the first Tuesday of six consecutive months last year.

The number was 28pc in June for SAH before gradually creeping up to 29pc in October and 33pc in November.

Attendance rates for Victoria Quay were even lower, standing at 19pc in June and 21pc in November.

The SAH running costs between 2002 and 2023 were £1.3m, covering utilities, catering, cleaning, waste removal and security.

The figure for Victoria Quay was £2.4m.

We revealed in August that Scotland’s new social security headquarters had an occupancy rate of less than 40pc due to staff working from home.

Running costs came to nearly £1.5m.

Colin Borland of the Federation of Small Businesses in Scotland said: “Those who come into town for work are a big element of weekday footfall for businesses – especially at times of year, like now, when trade in many retail, leisure and hospitality firms is slower than usual.

“The fact that many office, or former office, staff are still working from home for at least part of the week means some of their spending power continues to be lost to our town and city centre economies.

“They don’t buy the sandwich, or nip out for a bit of lunchtime shopping, or have a quick drink with colleagues before catching the train home.”

Tracy Black, Director, CBI Scotland, said: “The way we work has changed dramatically since the pandemic, but city and town centre businesses have lost out due to reduced footfall as more people have worked from home.

“There’s no one size fits all approach to home working. It allows employers access to a wider pool of talent and encourages people with childcare and other caring responsibilities to remain in work.

“We urge the Scottish Government to support major retailers and small firms in Scotland’s towns and cities by making business rates competitive to tackle the changes in the way people work and the current economic headwinds.”

Tory MSP Elizabeth Smith said: “This is the kind of public sector overspending the SNP government can ill-afford. If these two buildings usually have only a third and a fifth of staff coming into the office, annual running costs approaching £4m cannot possibly be justified.

“The SNP must finally introduce real reform, rather than expecting the Scottish taxpayer to pay more and more for the running costs of their failed government.”

A Scottish Government spokesperson said: “The Scottish Government is committed to flexible hybrid working for its workforce, enabling staff to work from a range of settings including working regularly with colleagues in the office and connecting with stakeholders and communities. Managers are asked to establish a model with their teams to ensure business needs are met.

“The Scottish Government estate is under review to allow us to plan for affordable, inclusive, accessible, modern, secure, energy efficient buildings of the right size to meet our changing needs and net zero ambitions, as well as to ensure best value for taxpayers’ money.”

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