A for sale sign has gone up at a council office block whose planned closure has been criticised by councillors.

Redcar and Cleveland Council was accused in August by Councillor Anne Watts of “closing the door” on Guisborough by disposing of Belmont House, in Rectory Lane.

Meanwhile, Guisborough ward councillor Bill Clarke has said he will “fight tooth and nail” to ensure the site is not used for more housing.

The sign states Belmont House is for sale or to let with the site having the “potential for redevelopment”.

The council is terminating a costly Private Finance Initiative (PFI) contract used to build and maintain Belmont House by paying an upfront ‘buyout premium’ with the intention of making savings, while moving staff into remaining surplus office accommodation in Redcar.

Functions delivered from Belmont House include social care, housing standards, environmental health, trading standards, the River Tees Port Health Authority, SEND and education advisors, and IT and finance.

The building has been operating at less than a third of its capacity with hybrid working arrangements meaning many staff are regularly working from home.

The council has stated it will seek the “best possible value” for the Belmont House site and a presence will be maintained at Guisborough Library from where residents can make appointments to discuss council tax or housing benefits.

Councillor Glyn Nightingale, cabinet member for resources at the council, previously said significant financial savings would flow from the closure of Belmont House as a result of reduced running, energy and management costs.

Cllr Watts, an independent, kept up her criticism and said officers were “running the show” at the council.

In an e-mail to council leader Mary Lanigan, she said: “The people of Guisborough will not be voting for the present administration next year as we have been sold down the river with a duff hospital, the town hall redevelopment and Belmont House.

“The council tax from Guisborough residents accounts for a large proportion of the money the council receives and we get nothing.”

After successfully making a business case out, the Government will make funds available to the council to buy itself out of the contract in the form of a lump sum repayable this financial year with the remainder to be paid from council reserves.

Belmont House costs approximately £642,000 a year to operate, while at the end of last year the council still had about £14m left to pay under the terms of the PFI contract which was due to run until May 2027.

Middlesbrough South and East Cleveland MP Simon Clarke, whose constituency office is next door to Belmont House, told the Local Democracy Reporting Service the closure was a matter for the council.

He said: “Ultimately what matters is delivering best value for money for local people.

“Buildings ought not to be standing empty at the public’s expense.”