New £50m arena plans 'not realistic' , says council

Jane Ashworth, who became the new leader in May, says the council has made many cutbacks in a bid to save money

Doubt has been cast over plans for a new events arena after the leader of Stoke-on-Trent city council deemed it "not a realistic proposition".

The 3,600 capacity venue had been earmarked for Hanley as part of the Etruscan Square development proposals put forward by the previous Conservative administration.

It would cost an estimated £50m to build which the current leader admitted was not financially viable.

The local authority announced it was on the brink of effective bankruptcy and urged the government to step in.

Labour leader Jane Ashworth said the authority needed to find £25m to level its budget.

Rising demand for social care services, including children in care, has increased pressure on its finances.

The authority faced a shortfall of £8.5m for 2023-24, a report has said.

The financial uncertainty means larger projects in the city may have to go back to the drawing board.

"There is an issue around Etruscan Square, as yet we are not clear what the most cost effective short-term and long-term solutions for that space are," she said.

Plans for development are "certainly not stopped", Ms Ashworth said but "may not be able to start as soon as hoped".

It would cost about £50m to build which would have to be fronted by the council.

"I'm not sure that that was ever a realistic proposition," she added.

The proposed development had included nearly 300 new homes, an underground car park and a 138-room hotel

The Etruscan Square scheme was designed to transform land previously occupied by the former bus station and East West Precinct with developments to be rolled out in three phases.

Proposals also made away for nearly 300 new homes, an underground car park and a 138-room hotel.

"There's virtually no fat to cut," the leader told BBC Radio Stoke about the council's finances.

"We're not buying new kit, reducing colleagues' travel allowances and reducing the amount of money we're able to spend on training.

"We're really down to the very, very bare bones. Next year it's going to be even harder."

The report said the council may have to issue a Section 114 notice in the future, which would mean most new expenditure was not permitted.

"It's becoming clearer and clearer that making ends meet next year will be incredibly tough," she said.

Daniel Jellyman , leader of the council's Conservative group, said private sector developers were needed to invest in the scheme so it could go ahead.