Officials have agreed to inject additional cash into the Berwick Maltings redevelopment amid warnings of a funding shortfall. Costs for the theatre regeneration scheme have risen by between £4 million and £5 million since the original 2018 estimates.
The increase has been blamed on inflation and project delays in the eight years since the plans were first mooted. Now, the Borderlands scheme has agreed to increase its total investment to £28.5 million - providing Northumberland County Council match the additional cash, bringing the local authority's contribution to £7.5 million.
Project timeline and scope
Work on the scheme is now expected to start in November, provided full council agree to the revised funding package. Along with work to transform the Eastern Lane site, the cost includes investment in facilities at the Barracks in the town to provide temporary accommodation for Maltings activities and support the wider Living Barracks initiative, which is being led by English Heritage.
The council say the project has already progressed through detailed design development and extensive intrusive investigations of the Eastern Lane building. These activities have provided a significantly greater understanding of the existing building and the construction strategy, which have informed the construction cost and programme.
Concerns raised over project management
Independent councillor Georgina Hill welcomed the additional cash - but raised concern about project management. The Berwick East councillor has been a long time critic of the council's arms-length regeneration company, Advance Northumberland, which is the project manager for the Maltings scheme.
Coun Hill said: “The initial investment and bid to get the Maltings secured as a major Borderlands project was fought for, successfully, back in 2018, I felt this then and I believe it now - this is potentially brilliant for Berwick.
“In the current climate, not many towns of our size are getting regeneration injections of £30m plus. And, of course, this isn’t the only significant investment in recent years.
“I have been a long time critic of Advance Northumberland and its predecessor, Arch. The wider experience of ‘arms-length’ regeneration companies and commercialisation in local government is not a good one - to put it mildly.
“Advance Northumberland are the project managers for the Maltings. I would not be being honest if I said I had full confidence in them.”
Economic factors and next steps
The local authority also said the cost of the project has also been affected by wider economic factors that have impacted construction costs, principally inflation resulting from the ongoing conflict in the Middle East and the impact of tariffs on steel prices.
Council Leader Glen Sanderson said: "I will be taking a formal report to our Cabinet meeting on October 6 which lays out our commitment to Berwick and for the Maltings. I will also be seeking the go ahead for the council to fund the shortfall that exists so the theatre can begin its new beginning as soon as possible.
"Subject to all approvals, we’re looking forward to spades going in the ground in the near future on this great cultural venue, which will bring in thousands of visitors and boost the wider economic fortunes of this area.
“Getting to this stage has brought us some challenges but I am confident the construction of this amazing new building will be underway this year.
“I want to thank everyone who has been involved and supported the County Council’s ambitions for Berwick, and I look forward to the new building taking shape over the coming months and years."
The transformed venue is due to open in Spring 2029. It’s forecast to attract 115,000 visitors each year, boosting the local economy.
