Grant-funded bar to reopen with 'fresher' look

Iron Lilies, in Hull's Princes Quay shopping centre, closed its doors in July

A city centre restaurant and bar is to reopen after its closure saw questions asked over funding it received from Hull City Council.

Iron Lilies, which was given a £750,000 Levelling Up grant before it opened in the Princes Quay shopping centre, closed in July after 12 months.

At the time, owners Tokyo Industries said the venue would reopen later in the year, and have now confirmed it will open its doors this month with a "fresher and more affordable product".

In a statement, the business said setting up Iron Lilies "would have been impossible" without the grant funding, adding that the project was also supported by almost £1.9m of private investment.

The statement added: "We understand that having been a recipient of this Levelling Up Fund, we have a responsibility to deliver, and we are busy working on a new format which we hope will be a welcome new addition to the hospitality sector in Hull."

Last month, the opposition Labour Group on Hull City Council called for an investigation into how the restaurant closed down within a year of receiving the public funding.

According to the Local Democracy Reporting Service, the Labour Group described the situation as a "scandal" and called for the full disclosure of the actions around the awarding of the grant.

Financial impact

The statement issued by the restaurant's owners addressed the Labour Group's claims, stating: "This feels entirely political point scoring between rival parties; it is a shame this much focus is not spent on understanding and supporting business and our communities who vitally need serious attention."

In August, a spokesperson for the Lib Dem-run authority defended the funding, stating: "The scheme has brought 19 buildings back into use, brought in £13m of private investment and supported 900 jobs."

Tokyo Industries also claimed the "unbearable cost headwinds" delivered by Chancellor Rachel Reeves had been "particularly impactful".

It said the cost of running the restaurant had "surged a staggering £88,000 per year" as a result of changes made to the National Minimum Wage and National Insurance contributions, among other changes.

At the point of pausing trading, the restaurant had cumulative trading losses of £536,431, the company said.

Listen to highlights from Hull and East Yorkshire on BBC Sounds, watch the latest episode of Look North or tell us about a story you think we should be covering here.

Download the BBC News app from the App Store for iPhone and iPad or Google Play for Android devices