A London library has had its service charge hiked from £8,000 to roughly £40,000 annually after a new landlord took over the site last year. Shoe Lane Library, which is located in Hill House not far from Fleet Street, is understood to have not had its rate reviewed since the 1980s.
The site’s landlord, Landsec, said it is not charging the full amount allowed under the lease, and that the company is committed to working alongside the library to ensure it ‘continues to succeed’. The local authority says that it is not anticipating an impact on services.
Shoe Lane Library, which is managed by the City of London Corporation, is described as a ‘sanctuary’ on the City’s webpage. It is also home to the Dragon Café, a collaboration between the City of London and the charity Mental Fight Club.
It is due to temporarily move from Hill House to One New Change over the winter, after planning permission to redevelop the site was approved earlier this year. Under the scheme, a new, state-of-the-art space is to be provided for Shoe Lane.
It has also emerged however that when the developer Landsec took over the premises from the library’s previous landlord, Deloitte, it introduced a new service charge five times that initially levied.
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According to a paper prepared for this week’s Culture, Heritage and Libraries Committee, this new rate is believed to be ‘in line with the existing lease and has been agreed by City Surveyors and Legal to be a lower sum than the existing lease might grant the landlord’.
Corporation officers added: “In 2023-24, this increase will be covered by a 50 per cent underspend in the rates budget. There may be a risk of either a budget reduction in other areas in the future or an increase in budget allocation required in the future.”
A spokesperson for Landsec described the library as a ‘much-loved space in the City of London’, and pointed to its plans to deliver a new ground floor home as part of the regeneration of Hill House.
“Whilst construction is underway, Shoe Lane Library will remain in the city so that it can continue to provide Londoners with a space to read, sit and study,” they added. “We’re committed to working alongside the City of London to ensure the library continues to succeed.”
A spokesperson for the City of London said: “The service charge period being referred to is 2023-24 onwards and we are not anticipating any impact on services. We will realign budgets with underspends to cover the increased amount or request additional budget. Landsec has been generous in its understanding of the library being an important community asset and has billed the service charge accordingly.”
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