Councillors have a £43m question to answer over the financial future of the Croydon Council offices.

Under the terms of its finance agreement for Bernard Weatherill House, the council has started a 25 year payment deed to developer John Laing.

Part of this is a £13m equity loan with interest, which is estimated to cost the council £43m over the period of the agreement.

But at a Cabinet meeting on Monday night, councillors will be debating whether to buy out this part of the payment deed.

It is allowed to do this between one and two years of the building being completed by paying John Laing the agreed sum of £20.25m.

If councillors agree to do this it is proposed that the money will be treated in the council’s accounts as a payment in advance and charged to the council’s revenue account over the estimated life of the building, which is 50 years.

The impact of this on the council’s accounts will be a charge each year to revenue of £0.405m.

John Laing and Croydon Council have been partners since 2008 when they signed up to work together on regenerating part of Croydon town centre, including the council offices.

The Croydon Council urban regeneration vehicle (CCURV) is a 50/50 joint venture partnership between the two where the council invests land and the developer invests equity.

CCURV’s main regeneration projects are Bernard Weatherill House, Waddon leisure and housing, Taberner House and Lion Green car park.