Preston City Council helped cover soaring cost of museum revamp

BBC News

11 hours ago

A £3m increase in the bill for refurbishing a historic Lancashire museum was partially subsidised by a city council, despite earlier reassurances rising costs would not be met by taxpayers, it has been revealed.Preston's Grade I-listed Harris building is due to reopen on 28 September after four years and what has turned out to be a £19.2m renovation.The final cost was 17% more than the £16.2m budget set out for the project, which Preston City Council councillors ascribed to "hyper-inflation" and the cost of materials rising "enormously".The additional required funding was split between the city council and the National Lottery, according to the Local Democracy Reporting Service (LDRS).
The LDRS understands Preston City Council contributed a further £1.41m for the revamp, while the National Lottery Heritage Fund contributed £1.5m, with £62k coming from other unidentified sources.
'Hyper-inflation'
Details of the authority's additional contribution have emerged almost 12 months after councillors were told the money would not come from local taxpayers.A meeting of the council's overview and scrutiny committee last year heard from deputy chief executive Sarah Threlfall that the ballooning bill was the result of "hyper-inflation" and the cost of materials soaring "over the lifetime of the project".The extent of the rise was not made public at the time, but when asked by committee chair John Potter about how the shortfall would be bridged, Ms Threlfall said "the vast majority is not being met by…taxpayers, because there is external funding being put in place". The meeting was told an application had been made to the National Lottery Heritage Fund.However, figures obtained by the LDRS show a significant cash injection did ultimately come from the council – suggesting either less was received from the lottery funding pot than was required, or that costs continued to rise.A Preston City Council spokesperson said: "The additional costs reflect the programme impact of extending the scope of the project, funded through additional external funding, and the results of the previous fit-out contractor going into administration."The council's [extra] contribution accounts for less than 10 percent of the total project costs, demonstrating value for money in preserving the Grade I-listed building and establishing a cultural hub for Preston and Lancashire."It brings the total contributed directly by Preston City Council to more than £3.5m, while Lancashire County Council – which leases 40% of the Harris from the city authority to house the largest of Lancashire's libraries – has contributed around £1.4m.
The National Lottery Heritage Fund provided an initial £4.5m grant, with £1.9m sourced from Preston's share of the last government's Towns Fund.Back in 2018, the overhaul was originally envisioned as a £10.7m scheme to create the country's first "blended" museum, art gallery and library. But the ambition for the building was subsequently expanded, leading to a rise in pre-planned costs.In addition, more asbestos was discovered after refurbishment began, leading to extra spending on its removal.It is hoped, The Harris will attract about 500,000 visitors a year.The reopening, in September, will be marked with a special Wallace and Gromit-themed exhibition, entitled 'A Case at the Museum'.
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