Aviva Studios: Final cost of city's arts centre to rise to £240m

The final cost of building a new arts centre in Manchester is now estimated at £242m - more than double the original budget.

The latest rise of £22.2m comes six weeks after the city council pledged an extra £8.7m for Aviva Studios, on the old Granada Studios site.

Councillors heard more money was needed to finish the complex, which was once expected to be finished by 2019.

The developing venue recently hosted Manchester International Festival.

The Local Democracy Reporting Service said the project's original budget was £110m.

It has received £106m of funding from Arts Council England and the government, making it the biggest cultural scheme of its kind since the Tate Modern in London.

The latest council report on the rising costs blamed "the volatile economic climate and the complexity and uniqueness of the building".

However, it said the "game-changing" venue was "definitely worth the investment and worth the wait".

As a result, the council's governing executive committee was asked to approve an £8.7m budget increase, largely funded through borrowing, in July.

A further request for funding from the council is expected to be made later in the year.

The new report to the council's executive revealed this would be for £22.2m - again to be funded by borrowing - taking the total cost of the project to £241.7m.

The council said the additional spending would not affect funding for other services.

Deputy council leader Luthfur Rahman said: "Almost 250,000 people attending shows as part of this year's Manchester International Festival have already enjoyed a first experience of the exciting possibilities of Aviva Studios.

"It's a world-class addition to Manchester which will add to the city's cultural buzz, attract visitors and help create and support jobs.

"We look forward to its official opening in October once it's completely finished.

"As with any major construction project, the costs will not be finalised until after completion when the final accounts are agreed.

"The final sum required - including a detailed explanation for it and how it will be funded - will be brought to a forthcoming meeting of the council's executive once it has been confirmed."

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