Factory arts centre over budget again, taking total spend over £200m
03.10.2022 - 20:49
/ manchestereveningnews.co.uk
Manchester's new flagship arts centre will cost almost double what was budgeted for before work started with the total spend set to top £200m. The Factory International project will require an additional £25.2m to meet rising construction costs, according to a report published today (October 3).
The arts centre which is being built on the former Granada TV Studios site is anticipated to attract up to 1.15m visitors a year when it opens in June 2023. The unique building at the heart of the St John's regeneration area will be the permanent home of Manchester International Festival with events planned all year round, contributing an estimated £1.1bn to the economy over a decade.
However, the project which was initially due to be completed by 2019, has been heavily delayed and suffered further set backs due to the pandemic. Now, unprecedented levels of inflation, workforce shortages and the ever-increasing cost of materials have been exacerbated by the war in Ukraine.
READ MORE: Town hall's £325m restoration at risk of running over budget due to rising costs
Most of the funding for this project comes from the government and Arts Council England, but the council has had to increase its own contribution. Manchester council has already committed £55.4m towards the major project, and is now considering borrowing cash as part of its plan to finance it further.
Of the £25.2m required, £10m will be funded from the council's capital budget, with the remaining £15.2m to be borrowed and underwritten by the town hall. The local authority will also underwrite Manchester International Festival’s increased costs for the fit out of the building which is 'critical for the venue to operate', but has inevitably been driven by up to £7.8m
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