The total cost of developing Southport’s new art and events centre has ballooned from £73m to £106m, the council has revealed. The Marine Lake Events Centre project was initially supposed to be completed this year, but it is now set to open in early 2029.
Sefton Council said the cost increases were out of its control, being the result of inflationary pressures in the construction sector and wider economy. However, it added that it had been working hard to manage the costs without reducing the quality of the development.
An updated business plan reflects increased expectations in terms of the income expected to be generated, as well as visitor numbers and job creation. A business case will be presented to Sefton Council’s Cabinet on Thursday, June 25. Sefton Council has said that the venue will create 386 new jobs and attract 600,000 extra visitors annually, bringing over £30m to the local economy each year.
Council Leader Responds
Council leader Marion Atkinson said: “The Marine Lake Events Centre will play a major role in driving economic growth, attracting visitors and supporting jobs for years to come not only in Southport but across the Liverpool City Region.
“Of course we are disappointed that the project won’t be delivered for the initial costs targeted at the time of the Town Deal bid submission in 2020, but this is due to wider economic factors outside our control.
“Both public and private sector projects across the UK have seen costs increasing in some key construction categories by up to 60% since 2020.
“What we can control is the preservation of quality and impact of the project and we are doing just that.
“We could not consider sacrificing our ambition for Southport, for Sefton and for the region, and must find the funding to deliver on this ambition.
“That does not mean however that we have rolled over and accepted these new costings without challenge.
“Extensive work has been carried out to manage this increase while improving longer term commercial outcomes and preserving the quality and impact of the scheme. We have always been focused on robust commercial management and securing best value for public money.
“This includes identifying £12m of savings.”
Criticism from Conservatives
The increased costs have drawn criticism on social media, including from the deputy chair of Southport Conservatives and former councillor Mike Prendergast, who said: “There have undoubtedly been inflationary cost pressures in terms of material costs, but a lot of the increases in costs are down to the policies of the current government.
“With MLEC, local taxpayers are the customers and the only way the £33m extra now needed, 45% more than originally planned, can be paid for is with more borrowing.”
He claimed that this will result in a council tax increase next year to service the debt, and he added that the delayed opening date of 2029 is “having a very real impact on our local economy”.
Looking Ahead
Cllr Atkinson added: “The appointed venue manager and operator, Legends Global remains highly confident that the venue, when open will deliver significant community, economic and cultural benefits.”
Sefton Council expects to enter into the main construction contract later this summer as long as the scheme is approved by Cabinet and funding discussions are concluded by that time.
