A £20 million government grant which should have gone towards a new theatre in Derby is now to be used to “spruce up” two existing theatres in the city.
At the beginning of 2023, it was announced that the city council, the University of Derby and Derby Theatre had secured the money from the government’s levelling-up funding towards redeveloping the Assembly Rooms site. A new learning theatre would be created.
However, the city council has said that, due to rising costs because of high inflation, interest rates and increased construction and borrowing costs, the three partners have decided not to proceed with the project which has been deemed “unviable”. Instead, the money will be divided equally between Derby Theatre and the Guildhall Theatre.
The government has accepted a proposal to use the money to breathe new life into the two theatres.
City council leader Councillor Baggy Shanker said, “this is a very positive outcome for the city. With the scheme we inherited for the former Assembly Rooms proving unviable, we could have faced the situation where we had to give £20 million back to the government.
“We’ll now work to find an alternative solution for the Assembly Rooms which, in my view and that of many others, needs demolishing as soon as possible to enable a fresh start.”
Councillor Shanker added, “the financial landscape for local government means we can no longer take on the risk of proceeding with schemes of this scale, which could put us in the same difficult situation affecting some other local authorities who’ve had to declare effective bankruptcy. I’m delighted that we can keep this investment in our city.”
The 1,200-seat Assembly Rooms suffered extensive damage in 2014 because of a fire in the plant room, which powered the electricity and lighting supply, on top of its car park. The venue has remained closed.
Derby Theatre, which is owned by the University of Derby, is planning to use the levelling-up money to redevelop its theatre space and “enhance audience experiences”.
The 242-seat Guildhall Theatre, run by the city council, has been empty since January 2019 after part of the ornate ceiling of the Grade II-listed building fell down during an inspection. A reported £1.5 million has already been spent on repairs, but the council has confirmed that problems were more widespread than initially thought and the building still requires “significant work to meet safety standards and customer expectations”.