A £540,000 council scheme to create shared office space for businesses in Harrogate generated woefully less income than predicted, the Stray Ferret has discovered.

Co-Lab, which was based in Springfield House, did not even make enough money to cover cleaning and reception costs.

The venture, which closed at the end of November, provided office space for up to 10 people, including desks, high-speed broadband, meeting rooms, a kitchen and showers.

When it opened in 2021, Harrogate Borough Council said it expected the initiative to generate annual rent of £49,000. 

Chief executive Wallace Sampson hailed the concept as "absolutely fantastic" and deputy leader Graham Swift described Co-Lab as a “fantastic co-working space”.

But it failed to make even a third of the predicted sum in the best year of its short-lived life, according to a freedom of information request by the Stray Ferret.

The council’s response to our request revealed Co-Lab’s annual income was:

2022/23 - £10,811

2023/24 - £15,297

2024/25 – £6,675

2025/26 - £700

We also asked how much it cost to run Co-Lab, which occupied one floor of the four-storey Springfield House. The property is part of Harrogate Convention Centre on King’s Road.

The council said:

“Property costs are not split between the individual floors but to the building as a whole or to the wider convention centre complex. Reception and cleaning costs are shared with the convention centre, and these are estimated at:

2022/23 £16,500

£2023/24 £17,500

2024/25 £24,800.

The response added:

“It isn’t possible to provide reliable estimates for other property costs such as utilities, compliance costs, repairs and business rates.”

Reopening possible

Construction company Lindum was paid £500,000 to refurbish the premises in Springfield House after Harrogate Borough Council secured £540,000 funding from Leeds City Region Business Rates Pool, which was administered by Leeds City Council, to create Co-Lab.

Despite the lavish new look, it failed to attract enough customers.

The fall in income in recent years heighten concerns that North Yorkshire Council, which replaced Harrogate Borough Council in 2023, did little to promote Co-Lab.

The end came after a routine fire inspection, which the council said “indicated that continued use by third parties could pose safety risks that needed to be addressed promptly”.

It added:

“Given that occupation levels were already low, a decision was made to mitigate these risks in the short term by suspending use of the building by third parties. This approach ensures that safety remains the top priority while allowing time to consider longer-term solutions.”

However, North Yorkshire Council is considering reviving the initiative. It said:

“Over the coming months, we will review options for the future use of the site. One of the possibilities under consideration will be to reopen and operate the facility in its previous form, subject to addressing the identified safety concerns.”