A seaside tourist attraction which owes £51 million to the council has filed for insolvency . Bosses of Brighton seafront’s observation tower, Brighton i360, have announced the notification of administrators, blaming escalating costs, bad summer weather and the cost-of-living crisis as the reasons behind the decision. But Brighton and Hove City Council chiefs have said the “extremely disappointing” move will hit the council’s budget after it loaned millions to the project in 2014 and remains the biggest creditor.
The viewing deck will remain open while it enters the financial process and reviews options including for administrators to try to find a buyer to rescue the tourist attraction. The city landmark opened in 2016, after councillors agreed to take out a Government loan and pass it on to developers. As of November 2024, the total amount owed to the council was £51 million, while the actual loss to the council stands at £32 million for its loan debt and interest repayable to the Government, the council said.
Leader of Brighton and Hove City Council and Labour leader Bella Sankey blasted the development as a “day of shame” for the Green Party, which led the authority at the time, and a “sad day” for the city. “Their calamitous decision to loan a vast sum of public money to this failed business venture has left the residents of Brighton and Hove £51 million out of pocket,” she said. “Our council must now repay their folly amounting to over £2 mill.