Delays to project cost taxpayers £450k

The Forum will encompass offices, a four-star hotel, and flats among other amenities

Delays to a flagship redevelopment project have cost taxpayers about £450,000 in lost income so far.

Gloucester City Council hopes The Forum, part of the King's Quarter development, will make the area more vibrant by increasing footfall to the city centre and creating more business opportunities.

The £107m project includes 142,000ft sq (13,192 metres sq) of office space, a four-star hotel, flats, a multi-storey car park and retail units. It was expected to be nearly completed in October 2024.

Gloucester City Council said delays to The Forum, which is due to open in early 2026, have contributed to a shortfall of £3.6m in expected income, and that it is having to borrow money to cover the loss.

The Local Democracy Reporting Service reports the loss will be accounted for by the income made by rent paid to the council by businesses over the life of the building.

Declan Wilson, resources and assets cabinet member at the council, said this year's budget was based on the expectation that The Forum would be mostly completed in quarter one of 2026.

"Accordingly, the estimated additional income from the property and the car park was included in the budget at £4m," he said.

Mr Wilson said the estimated useful economic life of The Forum has not yet been finalised, but for similar buildings it is usually about 40 to 50 years.

Forecast income 'not received'

"Similar to the expected income, the budget for 2025-26 included the estimated additional interest cost of the properties at £3.5m," Mr Wilson said.

Although The Forum has not been completed yet and the expected income has not materialised, Mr Wilson added that this meant interest costs have not been incurred either, as the interest is being capitalised.

Interest is capitalised when an asset, in this case, The Forum, is being constructed.

The interest will then be added to the final value of The Forum, and will depreciate over its expected useful life.