Bitter exchanges over Stockton Globe theatre as reserves plan is passed

Councillors agreed by 37 votes to 14 to use up to £4.2m of its reserves to plug a hole in the authority’s accounts on Wednesday night.

But the high street theatre project was front and centre in the virtual chamber – with an extra £1.2m on its price tag and its delayed reopening until April next year sparking terse exchanges.

The virus has put a £17m dent in the council’s coffers.

Meeting papers showed £4m has been lost in income at the council – with much less money coming in from rents, licensing, planning and parking fees since March.

A £4m adult social care bill, £3.5m costs for children in care, and an extra £1m to continue weekly bin collections during the lockdown have also taken their toll.

Reports also pointed to extra PPE and shielding hubs costing £800,000 and a £2m bill to cover the cost of closed Tees Active leisure centres in the borough.

But there were questions why an extra £1.2m for the Globe Theatre and £500,000 more for Ingleby Barwick’s new leisure centre were included in the £17m costs.

Extra Government funding has reduced Stockton’s financial hole from £6m to about £4.2m. But Labour leader Cllr Bob Cook warned councillors it still wasn’t enough. He said: “We welcome this extra funding but there’s still a £4.2m financial pressure which is still quite a big sum.

“We would all agree the coronavirus pandemic has brought unprecedented circumstances – not just in the borough, but right across the world and it’s not surprising this has impacted on the council’s services and projects.

“It’s presenting many financial challenges to all organisations and councils around the country.”

Conservative group leader Cllr Tony Riordan repeated his worries about “frivolous” spending by the council – pointing to the Government’s support and aiming fire on Cllr Cook’s leadership.

He added: “The report quite rightly highlights the financial pressures that the pandemic has brought, however, the Labour-led council appear to blame everything on this tragedy.

“They still refuse to accept that their frivolous spending of the local taxpayers money over many years is the real issue.

“They have saddled our children and grandchildren with an inordinate amount of debt and haven’t blinked an eye in the process.”

The Tory leader said promises of deadlines for the Globe Theatre opening had been put back with “ever spiralling costs”.

He accused leaders of “knowing for months” that the Globe wouldn’t reopen in November and that “councillors had not been informed”.

Cllr Riordan added: “Anyone with a modicum of common sense knows that the way this project has been handled in an embarrassment and has continually failed the local taxpayer.”

It was a tense hour and a half on Microsoft Teams with several points or order, interruptions and the odd loss of connection.

In the past, leaders have banked on projections showing the Globe will bring an extra 200,000 visitors to Stockton town centre every year and a £18m boost to the local economy.

But Cllr Riordan claimed the £18m was “flawed” and “untrue” before accusing the council of “keeping people in the dark” over past purchases of the Castlegate and Wellington Square Shopping Centres.

Conservative colleague Cllr Lynn Hall said the Globe saga had been an “absolute disgrace” – pointing to the lower costs of the neighbouring Hippodrome Theatre, in Darlington.

The cost of renovating the Grade II Art Deco theatre has risen steadily since 2011 – with the price tag now standing at £28m before annual rental costs are factored in.

There were also calls for an independent inquiry from Thornaby Mayor Cllr Steve Walmsley, who branded the Globe project “a shambles”.

The Thornaby Independent Association (TIA) member added: “What puzzles me is if this theatre, if it’s eventually finished and attracts all this money, what do the people do coming out of the theatre? Do they go and sit in the park all day in our inclement weather? It doesn’t make any sense.”

Labour didn’t take the criticisms lying down.

After a failed motion to remove the Globe and the Ingleby leisure centre from the financial plan, Cllr Nigel Cooke, cabinet member for regeneration and housing, said those dissenting had always opposed the theatre’s restoration.

He told councillors the pandemic had changed the legal status of the project – and how social distancing had reduced the workforce on the high street renovation from 120 to 30.

“This is a covid story,” he added. “Prior to covid, I was very confident that we would be able to open in November this year. I was very confident but covid has robbed us of that.

“My thoughts tonight are with the thousands of people across the country who have lost lives and loved ones, those who’ve lost their jobs and the businesses that have gone to the wall because of covid. That’s more of a concern to me.”

Cllr Jim Beall, cabinet member for culture, leisure and health, hit out at the Government for failing to provide funding to cover the covid crisis – as well as the opposition’s jibes about the Globe.

“As usual, our Tory opposition are well aware of the price of everything, but to use that old hackneyed expression, the value of nothing,” he added.

“The people of this borough want to see the Globe completed – and it will be completed if we pass this tonight.”

The Globe project also found backing from veteran councillor Bill Woodhead – who believed it was money well spent.

The independent member said: “We’ve got people comparing the Globe with the Hippodrome, in Darlington, but there is no comparison at all.

“We’re going to seat about 3,000, while the Hippodrome seats about 1,000. You can’t compare the Globe with anything else in the Tees Valley. We’ll be the envy of other boroughs – and we’ll be top of the bill.”

Cllr Cook rounded off the debate referencing the council’s good audit reports – before pointing to £73m of Government cuts the authority had faced since 2010.

He disagreed with the comparison with the Hippodrome – and said council group leaders had been fully consulted on the past purchases of Wellington Square and the Castlegate.

Cllr Cook added: “The Globe had been empty for 15 years and under quite a lot of water with the elements getting in – so there was a lot more work to be done (than the Hippodrome).

“Hopefully, the night-time economy will be enhanced by 200,000 more people using the town centre using pubs and restaurants.”

The use of up to £4.2m of reserves to deal with the pandemic costs were eventually agreed.