Treasury supports ACE capital bid loser

The Government will give £5m of public funds directly to Hull New Theatre for its refurbishment plans after Arts Council England (ACE) rejected its grant application over “serious concerns” about its business case.

Chancellor George Osborne announced the grant in his 2016 budget this week, along with £8m to help create a lasting cultural legacy in Hull following its year as UK City of Culture in 2017.

According to documents seen by Hull Daily Mail, ACE rejected the funding bid earlier this year following concerns about the “suitability of experience” of the consultants and proposed contractors as well as the suggested timetable of works, which indicated construction would start just three days after a final approval decision.

Despite this, today ACE welcomed the news that the Government will be supporting the refurbishment, telling AP: “It’s very encouraging to see the Chancellor giving such a ringing endorsement of Hull’s plans.”

ACE said it was not aware of the Government’s plans to support the refurbishment when it rejected the funding bid.

AP asked the Treasury what measures had been taken to convince them this investment was an appropriate use of public funds, but the Treasury failed to comment.