Harrogate Convention Centre plan axed over spiralling costs

The council blamed spiralling building costs which has seen the cost of the project jump to £57m

Plans for a major redevelopment of the council-owned Harrogate Convention Centre are set to be axed over spiralling costs.

North Yorkshire Council said it could not afford the cost of the project which has jumped from £49m to £57m.

The authority faces a £41.6m deficit in its budget this year.

North Yorkshire Council's executive director for finance, Gareth Dadd, said the centre would still "continue to play a key role in the future".

He said: "We need to make sure that we are providing the best value for money for residents and businesses across North Yorkshire, and we will carefully consider the options that are available for renovating the Harrogate Convention Centre.

"We need to decide how best to take the redevelopment plans forward while protecting the impact that would have on the public purse and the economy of the town."

It comes after the council also failed in a bid to win Levelling Up money from the government that would have helped fund the project.

Senior Conservative councillors are expected to officially scrap the project at a meeting next Tuesday.

The centre opened in 1982 with conferences and events providing a boost to the town's bars, restaurants and hotels.

Centre director Paula Lorimer argued it would be counterproductive to shut the venue to allow works to take place as lucrative events might never return to the town.

More than 150,000 people visit the venue each year, with upcoming events including the Harrogate Bridal Show and the Local Government Association annual conference.

The council helps to fund it with a £2.7m annual subsidy and the facility has struggled to turn a profit for decades.

However, it argues the centre contributes £45m a year to the wider Harrogate district economy.

According to the report, the venue has also had a resurgence post-Covid with bookings increasing by 28% and a healthy outlook predicted for the next 12 months.

The report accepted there was still a need to invest in the facility but said it must be done in a way that avoided shutting large parts of it for significant periods.