A COUNCIL has agreed to release almost £1m of extra funding to ensure work on a multi-storey car park in a can go ahead.

An urgent decision was made last month by the leader of Darlington Borough Council, Bill Dixon, to increase the budget allocated to a new 650-space multi-storey car park in the town.

When initial estimates were made on the car park's cost in December 2013, the budget was approved at £7m, with the actual cost expected to be £6.7m.

However, due to inflation and increased buoyancy in the North-East building industry, construction costs have increased by £898,000 from £6,374,627 to £7,273,603.

As the council must also factor in funding for risk, contingency and fees, the overall budget has now risen to £7.5m.

Cllr Dixon’s decision to release extra funds was backed by members of the cabinet at a meeting last night (Tuesday, January 6).

Speaking at the meeting he said: “It was quite a simple decision in a number of ways. Members will recall the figures we were dealing with were historic back in 2013.

“If we have any delay it is going to cause problems further down the line.

“There is no practical reason not to do it, so I saw no reason not to use executive powers to a reasonable level."

He added: “An 11 per cent increase in the building industry has given huge problems when we are competing with other projects."

Cllr Anne-Marie Curry, leader of the town’s Liberal Democrat group, raised concerns over whether the budget increase left the project with any contingency money.

But Cllr Dixon reassured members the contingency money has been built back in to the budget.

The five storey development, which Cllr Dixon described as the third part of a trilogy of new buildings for Darlington, is being built to accommodate the extra traffic generated when the under-development Feethams leisure complex is complete.

Work is now expected to start at the site this month, after planning permission for the car park was granted in June.

The development is expected to be completed by Christmas this year.