Brighton and Hove City Council has decided to forgive a £51 million debt associated with the Brighton i360 observation tower, facilitating its sale and return to operation.
Despite their frustrations, council leaders endorsed the move as the most viable solution for the city, anticipating that future revenue and business rates would mitigate the financial impact.
The seafront attraction declared insolvency shortly before Christmas last year after failing to secure a buyer, resulting in its immediate closure and the redundancy of 109 staff members.
The decision to enter administration was attributed to rising costs, poor summer weather, and the ongoing cost-of-living crisis.
Originally funded by a substantial loan from the council in 2014 under Green Party leadership, the council remains the largest creditor of the project.
During a cabinet meeting, Deputy Leader and Finance Chief Jacob Taylor stressed that a successful sale could not proceed without cancelling the debt, as failure to do so would leave the structure to decay, negatively affecting surrounding businesses.
Taylor praised the new operators, soon to be announced, describing them as a “superb company” set to take over the management of the 162m high viewing deck.
The council has also sanctioned an independent inquiry to address the errors made in the financing of the project, with Taylor emphasizing the necessity for the council to avoid such significant mistakes in the future.
Council Leader Bella Sankey criticized the decision to use public funds for the tourist attraction as “absolutely scandalous,” predicting that it would overshadow the council’s operations for many years.
The council had initially approved the development in 2006, with widespread support for revitalizing the seafront near West Pier, and officially opened the tower in 2016, attracting between 200,000 to 300,000 visitors annually.
However, Taylor highlighted that initial opposition stemmed from the overly optimistic visitor estimates of 700,000 to 800,000 a year.
Green Party Convenor Steve Davis noted the project’s long history and its role in regenerating a previously neglected area of the city, acknowledging both the positive outcomes and challenges of the investment.
