Row over spiralling cost of Bristol Beacon refurbishment

A political row over the escalating cost of refurbishing the Bristol Beacon has ensued after a public report on the multi-million-pound project was “mysteriously” pulled at the last minute.

Councillors who were expecting to scrutinise the report accused the council’s ruling Labour cabinet of trying to conceal the extent of the cost blowout until after May’s local elections.

But a top officer said Bristol City Council was suddenly forced to withhold the report from the public because its contractor had prolonged “live” contract negotiations.

The negotiations appear to involve the council attempting to transfer 95 per cent of the financial risk to main contractor Willmott Dixon for “millions and millions” worth of unforeseen problems with the refurbishment – leading to further accusations by scrutiny councillors of botched contracting.

Cabinet undertook to redevelop the historic venue – until recently known as the Colston Hall – for £52.2m and appointed Willmott Dixon.

But a report to members in July 2020 revealed those costs were set to spiral after a huge catalogue of unforeseen structural problems was uncovered during initial demolition works.

Unknown Elizabethan well shafts, Victorian stoves and hollow pillars propping up roofs were unearthed by workers.

A Victorian stove was discovered during the refurbishment of the historic venue – photo: Willmott Dixon

An update report, due in September but delayed until this month, was scheduled to go to cabinet on February 25 but failed to appear.

Its unexpected disappearance from the agenda shocked members of the council’s overview and scrutiny management board, who were set to scrutinise the report the day before cabinet.

Instead, they ended up grilling mayor Marvin Rees and senior council officers over why the report was pulled suddenly and when it will be published.

They left with no guarantee of a date, but hope it will be in March before the start of the pre-election ‘purdah’ period, during which political discussion of controversial issues is forbidden.

Referring to the paper having “mysteriously” disappeared, Conservative councillor Claire Hiscott told Rees: “I recall a similar delaying manoeuvre was attempted last year in relation to Bristol Energy.

“Can you provide an assurance that disclosure of the, frankly, scandalous project management in this case, will not be put off until after this year’s local elections?”

Rees said more information about the project would be made public once negotiations were concluded, the contract was signed and the administration was “satisfied” it had the “best possible deal” for the city.

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Read more: Amazing discoveries made during Colston Hall refurbishment

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Conservative councillor Geoff Gollop, who chairs the scrutiny board, said he was “extremely angry” at being given no notice of the report’s withdrawal, which only came to light when the cabinet agenda was published on February 18, nine days after members received a confidential briefing.

Stephen Peacock, the council’s executive director of growth and regeneration, said: “I found out about the commercial behaviour of our contractor about 12 hours before you did.

“I cannot go into detail but I can absolutely assure you… It was a very live issue and it was not something that was considered likely at the time I briefed you.”

Peacock said he immediately recommended the paper be withheld from publication to avoid jeopardising negotiations.

Gollop said disclosure was in the public interest when the money became significant enough.

Council chief executive Mike Jackson said: “I can see the dilemma but I don’t see what more we can do.

“The overriding interest here is to protect the council taxpayers of Bristol. As soon as we are past that point we’re happy to share that information.”

Green councillor Paula O’Rourke said: “As far as I understand it, 95 per cent of (the financial) risk is going to be transferred across and we need to make sure that we get that good deal.”

The refurbishment of the main auditorium began in September 2018 and was originally planned to be completed in 2021 – photo: Martin Booth

Liberal Democrat member Anthony Negus, an architect by training, said the situation made him think the council had botched the tendering process.

“What I’m worried about is that moving forward is going to cost this city council millions and millions of pounds,” he said. “Wilmott Dixon should have been advised of all the structural reports before they made their final tender.”

Labour councillor Jo Sergeant said she worried the “secrecy” would delay the project, drive up costs even further and force the Beacon to put on blockbusters to recoup the cost.

“I really worry… we’ll have to justify that spending by making everything really commercial so all we ever do is Britain’s Got Talent on Ice because that’s what makes the most money,” she said.

Peacock said his team was “working flat out” to conclude the negotiations, and he hoped it would be available by next month’s scrutiny and cabinet meetings, but it was up to the administration as to when they felt comfortable releasing it.

So far, over £40m has been raised towards the transformation of the Bristol Beacon, thanks to financial commitments that include £10m from Bristol City Council, £5m from HM Treasury, £10m from Arts Council England, £4.75m from the Heritage Lottery Fund and £5m from WECA – photo: Martin Booth

Amanda Cameron is a local democracy reporter for Bristol. Main photo: Martin Booth

Read more: Bristol Beacon receives £6m from government’s Cultural Recovery Fund