Plans to redevelop Yeovil's Octagon Theatre on hold
It's being blamed on rising interest rates
A £30m scheme to regenerate the Octagon Theatre in Yeovil has been put on hold due to rising borrowing costs.
South Somerset District Council announced its intention in late-December 2020 to upgrade the Octagon Theatre, expanding and enhancing the building to allow it to attract bigger shows and higher-profile acts.
The theatre has been closed since April, with £1.77m being spent to date on “a range or preparatory works”, including surveys to confirm no reinforced autoclaved aerated concrete (RAAC) is present in the building.
But Somerset Council – which inherited the project in April – has now agreed to put the project on hold in light of its rising cost, with councillors promising to “explore all the options” regarding the venue’s future.
The project was originally expected to cost £23.01m, of which £10m would come as a grant from Arts Council England and much of the remainder would be borrowed.
The district council voted in February 2022 to allocate a further £6m to the project in light of rising construction costs, bringing the budget to just over £29m.
The project went out to formal tender in January 2023, with planning permission being granted by councillors shortly afterwards.
In the first round of the tender process, the contractors estimating that it would cost in the region of £30.7m to implement all the improvements wanted by the council.
With a further round of tendering still to be completed, it is possible this final sum could rise even further.
Yeovil residents gave their reactions when the council’s executive committee met in Taunton to discuss the project on Wednesday morning (October 4).
Jason Welch lambasted the council for spending so much money on the project already, and called for the venue to be reopened as soon as possible to prevent further losses.
He said: “Who in their right minds really thought that this was ever going to happen in these financial difficult times? This whole scheme was never really going to get off the ground.
“What we are left with is a facility which was usable by most in the community is now closed, with a bill for £1.8m for various surveys undertaken which have likely rendered the facility unusable.
Councillor Mike Rigby, portfolio holder for transport and digital, said the options appraisal should try to deliver as much of the original project as possible, given the wider financial position of the council.
He said: “We’re not being asked to cancel this project – let’s make that very clear. All options remain on the table.
Councillor Graham Oakes, however, warned that simply reopening the theatre in its original form would lead to the Arts Council grant being permanently withdrawn, damaging the long-term viability of the arts in and around Yeovil.
He said: “If you reopen the theatre, £10m will go straight back ot the government – and that won’t be back again.
“The council will be blamed for breaking its promise. The way we get out of this mess, rather than being Treasury-led, is to build this project.