Council to consider more cash for Ikea store plan

The plans were first announced in 2021 and construction work is due to start this summer

A plan to convert Coventry's former Ikea store into a cultural centre may get a boost if councillors approve a funding increase.

It comes after Coventry City Council was given a report that shows there has been a rise in the project’s construction costs.

Councillors will be asked to sign off on the pledge later this month, although the figure involved has not been revealed.

The plans were first announced in 2021 and, with construction work due to start in the summer, the city council has been approached for comment.

The Labour-run council has warned in recent months that it is at risk of being declared effectively bankrupt, and councillors have voted to approve a plan to plug a £20m gap in its finances this year.

The budget includes a 4.99% rise in council tax, and cuts to street lighting and school bus routes.

The plans for the refitted building include artists’ studios, galleries and post-production filming facilities

The Ikea project is a partnership between the council and national organisations including Arts Council England.

The plan for the refitted building includes artists’ studios, post-production filming facilities, galleries, and a cafe.

But it has faced several obstacles so far, according to a report that will be considered at a council meeting on 12 March.

These have included a drop in interest from contractors due to economic and market conditions, and higher tender costs, though these have now been somewhat reduced.

The report proposes that the city council could fund the project's extra costs through "prudential borrowing".

The authority is also considering spending more money on fitting out the first two floors of the building, so they can be rented out more quickly, as well as using the outside decks of the floors as a permit-only car park.

The potential income from these floors could fund some of the shortfall, the report said.

This news was gathered by the Local Democracy Reporting Service which covers councils and other public service organisations.

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