The UK Government’s £20 million pledged towards the new Aberdeen Market is “at risk”.
The council secured the hefty grant from the Levelling Up fund to bankroll the new attraction planned for the site of the old BHS.
With an estimated £50m price tag, the Westminster cash injection would cover almost half of the cost.
But the application endorsed by officials was tied to the pedestrianisation of the central stretch of Union Street.
Sunak’s doubts over cash still being available
And last month, the new SNP and Lib Dem administration used their sway in the chambers to sink those plans championed by their Conservative and Aberdeen Labour predecessors.
There followed warnings the move could leave the Levelling Up money in jeopardy.
And on a recent trip to Aberdeen, Rishi Sunak confirmed that removing the traffic ban from the equation would require “a conversation” over the city’s application.
Aberdeen Market cash ‘at risk’
The situation will be discussed at a special meeting of the council’s finance committee on Wednesday.
And it comes at a time when elected members are being warned that the initial £50m cost predicted for the project could soar.
At the same meeting, work on new schools, nurseries and social housing could be paused or scrapped.
The documents state: “In the current construction climate, it is easy to foresee that additional funding will be required to deliver the full extent of the ambition.
“The committee will be aware that there is also a funding risk around the £20m
Levelling Up funds awarded for the Aberdeen City Centre Masterplan.
“This follows the recent decision in relation to bus access to Union Street.”
Row over risk
Former Conservative finance convener, Ryan Houghton, said the current administration was told this could happen.
He added: “The SNP/Lib Dem Administration was warned by officers and others that pushing ahead with their half-way house measures on Union Street central would put the £20m of funding at risk.
“We’re now seeing they are looking to cancel nurseries and housing projects, after being unable to help keep the swimming pool open too.”
Lib Dem council co-leader Ian Yuill hit back, accusing Mr Houghton and his colleagues in the previous ruling group of focusing on the expensive building projects “for which Aberdonians will be paying for decades to come”.
He said: “We are not going to take lectures from Councillor Houghton on managing building projects or finance.
“Like families and businesses across the country, Aberdeen City Council has been hit by soaring inflation and energy costs.
“The Liberal Democrats and SNP are determined that the council lives within its means.”
And what about the beach?
The council has already committed a combined £150m to both the city centre upgrades and Beach Masterplan.
With fears about rocketing construction costs in mind, more money is being sought to ensure the regeneration of the seafront.
And the papers confirm that the local authority has now applied for the second round of Levelling Up cash, to help pay for “proposals included within the Beach Masterplan”.
What will UK Government cash go towards?
The seaside scheme features a package of proposals designed to turn the area into a “vibrant visitor hotspot”.
Among the projects are a new stadium for Aberdeen FC and upgrades to the Beach Ballroom.
Following a vote last month, officers are compiling a business case for the ground.
It will be discussed later this year, with the Dons appearing increasingly keen on the idea of relocating near to their historic Pittodrie home.
But the SNP’s Alex McLellan has confirmed that the Levelling Up bid is to cover other aspects of the project – such as the new parks earmarked for land near the coast.
You can see the papers for the upcoming meeting here.
Conversation