i360 debt repayments causes funding gap – council

In 2014, the council agreed to lend £36.2m to Brighton i360 Ltd to fund the 531ft (162m) tower

The leader of Brighton & Hove City Council has warned that funding towards early years education and cost of living support in the city has suffered due to missed debt repayments by the i360.

In December, the owner of the seafront tourist attraction failed to make a six-monthly loan repayment to the council for the second year in a row.

Council leader Bella Sankey has called for a “realistic” repayment plan to be produced.

Brighton i360 Ltd said the attraction had faced “huge challenges”, but paying the loan back to the council had “always been a top priority”.

In 2014, the council agreed to lend £36.2m to Brighton i360 Ltd to fund the 531ft (162m) tower - money which came from the government's Public Works Loan Board.

In December last year, Ms Sankey said the company had paid £250,000 towards that year's debt, but the annual total should have been £1.49m, with payments due each June and December.

The i360 has repaid £5.8m. However, under its original repayment schedule, it had been due to pay almost £18m by September 2023.

Council leader Bella Sankey said the lack of repayments was taking its toll on other council services

Ms Sankey said the lack of repayments was taking its toll on other council services.

“Had the i360 company been able to make its annual repayments to the council, we would have millions of pounds more to spend on core services for our city,” she said.

“Such as early years investment, supporting residents with the cost of living, improving the look, feel and cleanliness of Brighton and Hove and addressing the mental health challenges of our young people.

“We’ve therefore asked the managers of the i360 to produce a realistic and deliverable business plan for making the repayments that are owed.”

The i360 has seen a 16% drop in visitor attendance compared to pre-pandemic levels

The i360 has seen a 16% drop in visitor attendance compared to pre-pandemic levels.

Brighton i360 Ltd chair, Julia Barfield, said the attraction had also dealt with “rising inflation, bleak summer weather, the cost-of-living crisis and national train strikes”.

“Paying the loan back to the council has always been a top priority for Brighton i360 and we are sorry we are unable to make December’s instalment to the council,” she said.

“We remain committed to improving the business and are actively implementing numerous initiatives to drive increased revenue.”