Financial uncertainty for resort's new centre

The 5m project for a bespoke cultural and business centre, with theatre and conference facilities, has secured 3m council funding but depends on another 2m from the regional development agency.

The council says with the new Government's spending cuts to reduce the public deficit, the Hornsea project, along with hundreds of others nationally, is effectively in "limbo" .

Council leader Stephen Parnaby said: "The council will of course continue to do all it can to support this project but the outlook for the new centre in its present form is not good.

"It is particularly disappointing because the council has been ready and able to progress the project for several years now.

"As long ago as 2005 we identified a site adjacent to the leisure centre as the most appropriate to support the regeneration area linked to the Central Promenade and to ensure efficiency of running costs.

"Unfortunately a lot of local wrangling and delay eventually led Yorkshire Forward to commission an independent study which decisively concluded that the council's preferred site and not the existing Floral Hall site was the right choice and the one that met Yorkshire Forward's criteria for support, but in the meantime valuable time was lost.

"If we could have moved faster, I am confident we could have got the funding package sorted and been on with the job to the benefit of Hornsea residents and visitors."

Coun Jane Evison, cabinet portfolio holder for cultural services, added: "The delays we have encountered may well prove to be very expensive."