星空传媒

Horizon Housing Group is taking a hit of up to 拢300,000 in redundancy costs as it restructures its architecture and surveying arm.

In addition it is likely SLD Architects and Surveyors will report a deficit against budget of up to 拢500,000.

SLD, which provided services to Horizon's members, other housing associations and a small number of private clients, will no longer undertake any architectural work either inside or outside the group.

At a meeting in January, Horizon's board decided that there was no longer a need for an in-house architectural practice because its development partners had their own architects.

However, it is understood that Horizon still requires surveying work, so this service will continue to be offered to members of the group, but not to external clients. Under the restructuring, SLD will become a business unit within the group rather than a company.

Horizon will try to redeploy SLD staff within the group but there may be redundancies.

Staff and trade unions at the 26-strong practice are being consulted and a decision on redundancies will not be made for several weeks.

Ben Wilson, chief executive of Horizon, said the figures for redundancy costs and deficit against budget were "estimates for worst-case scenarios". He said: "We have not changed anything to do with surveying, we are just not doing architectural work and not going to external tender for architecture and surveying.

"Given the amount of section 106 we do, there is less need for architectural advice but there is a continuing need for surveying in our stock regeneration work.

"Like all organisations, we have to decide what is and isn't our core business. Is it the right thing to spend residents' rents on? We reached this view after a considerable period of discussion."

However, a source close to Horizon said SLD could incur further costs for withdrawing from contracts.

Wilson countered: "A number of external projects came to an end and in the majority we have already negotiated an end of contract with the relevant clients. It's not the case that there are a large number of contracts about to be terminated." SLD stopped tendering for architecture work several months ago, he said.