THE First Minister may move into a new official residence as part of a drive to cut costs.

A number of alternatives to retaining Bute House in Edinburgh’s Charlotte Square as the official home of the First Minister are being considered.

The news comes after Civil Service officials estimated the cost of refurbishment work for the property could reach £3.5 million.

It is understood Bute House, for which a commercial rent is paid to the National Trust for Scotland (NTS), needs upgraded disabled access and security.

Alex Salmond has been advised moving into a building already owned by the Scottish Government could keep costs down. One option is the empty Governor’s House in the St Andrew’s House complex, near Calton Hill.

A Scottish Government spokesman said: “Our aim is to reduce the costs of our estate by 25% over the next five years. That is why we are considering if there is an alternative to the continued commercial rent and unavoidable expense of maintaining and refurbishing Bute House as a listed property – owned by the National Trust for Scotland, but with costs falling on the public purse.”

He added: “Governor’s House is one of several options being explored but no final proposals have been developed.”

A spokesman for the First Minister said: “The First Minister is extremely fond of Bute House as a place to showcase Scotland. However, in the current financial climate, we have to pay attention to any proposal which substantiates a more cost-effective option.”

Simon Rettie, managing director of Rettie and Co, said Bute House is a top address in Scotland. “Trophy properties that become available always attract considerable interest,” he said”

Pete Selman of the NTS said: “Should Bute House come to our direct control, we would consider its long-term conservation needs and options and commercial opportunities in the same way as we are doing with the rest of our portfolio.”