Cost of multi-million pound town centre redevelopment still could change due to inflation

The cost of the controversial multi-million pound Galleries redevelopment in Wigan town centre could change due to inflation, a meeting heard.

As a joint meeting between the Confident Council Scrutiny Committee and the cabinet saw council bosses reaffirm their commitment to the £135 million project - but cost is still being questioned. The vision for the town centre overhaul would see the construction of a hotel, 464 homes and a multimedia centre with a cinema, ten-lane bowling alley and indoor mini golf as well as new market hall with stalls, shops and offices.

When Independent member Coun James Paul Watson asked in Wigan Town Hall whether the cost of £135 million was fixed, he was told it depended on market rates.

READ MORE: TransPennine Express cancelled almost a quarter of all trains in a month, including 1,048 the night before

“We have mitigation for risk in the programme,” Paul McKevitt, Director of Resources and Contracts and Deputy Chief Executive, said, answering Coun Watson’s question on February 16. “So at the moment we have got a period of high inflation so we have an element to cover inflationary pressures.

“Currently we have a provision for £130 million and each quarter we will come back with a capital programme and we may need to revise that upwards or downwards. At the moment the demolition stage is going on and that takes about 18 months to complete.

“That is where we hope interest rates will start to decline and fall again. We hope that by the time it comes to the building stage of the project prices may well have come down and that might bring it to within £130 million.

“While we accept that there may be some risk around the cost of the Galleries, that is why we are presenting it at that level