Staff at the landmark red-brick building at the bottom of The Moor have been told to expect a relocation to the spot next to the City Hall.

After assessing potential locations across the city centre, the Government has chosen to work with Wilson Bowden Developments in Holly Street where the old NUM offices stand empty. The new building will accommodate up to 800 staff.

A Government spokesperson confirmed:

"The Department for Children, Schools and Families and the Department for Innovation, Universities and Skills have announced to staff that, subject to successful contractual negotiations, they will be moving offices in early 2011.The new office is expected to be on Holly Street, next to the City Hall, in Sheffield."

Both the Moorfoot offices - still known by many people under its original guise nearly 30 years ago of the Manpower Services Commission - and the former NUM HQ have been earmarked for demolition for some time, but it has not been known until now where the Government workers would move to.

It is thought the choice eventually narrowed to Holly Street or the site of the former Hallam students' union opposite the rail station where a deal with developers CTP St James was an option.

Council leaders are welcoming the opportunity to maintain some momentum in the city centre at a time when private sector projects are stalling.
In the current economic climate, only developments with prelets are likely to proceed.

David Curtis, the council's interim executive director of development, environment and leisure, described it as "a very significant relocation", offering the prospect of realising one of the city centre's "magnificent seven" regeneration projects.

"Our main priority has been to ensure that the Government offices are retained in Sheffield," he said. "They are a major employer.

"We have worked hard for some time to ensure we had a good choice of alternative locations and we are delighted they have chosen Holly Street, which means we can complete the regeneration of the area around the City Hall."

Council leader Paul Scriven said the key to unlocking the deal had been the council's "bold" decision to buy the lease of the Moorfoot site, which gave the Government the financial confidence to press ahead with an alternative location in the city centre.

Without that offer, there had been a risk of the Government staying put or even looking to move outside the city.

"In these economic times, we take the view that there is a role for the public sector to broker an agreement so that jobs stay in Sheffield," said Coun Scriven.

Another of the aims is to see the Moorfoot land in council hands ready to work with a developer when there is an economic upturn. The site is scheduled to become part of a new business district.

Work on the Holly Street building is expected to start early next year - one of two office blocks that Wilson Bowden have council permission for in a development running up to Carver Street.



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