Essential upgrade work to the ACC Liverpool arena and convention complex will now cost the city council more than £11m – £5.4m more than originally planned. Tony McDonough reports
Liverpool City Council will spend £11m on essential upgrade work on the ACC Liverpool arena and convention complex.
In 2019 the authority, which is the owner of ACC Liverpool on the waterfront, agreed to spend £5.7m on the essential works. However, steep rises in cost of materials, labour costs and inflation has pushed the bill above £11m.
However, the council considers this investment to be money well spent. ACC Liverpool Group is a major driver of the city centre economy thanks to events such as Eurovision and the Labour Party conference.
Comprising the M&S Bank Arena, Exhibition Centre Liverpool and the Pullman Hotel, the complex first opened in 2008. Since then it has welcomed more than 8.3m visitors and generated an estimated £2.1bn in economic impact for the city region.
This council funding will include upgrades to the power supply, air conditioning, heating, sound proofing, drainage, paving, the roof membrane, escalators and lifts, fire detection systems and the replacements of doors and CCTV.
Councillors on the city council’s cabinet are expected to approve the extra cash at their next meeting on Friday, February 1.
Cllr Nick Small, cabinet member for growth and economy, said: “The Arena, Convention and Exhibition Centre have provided an incredible boost for the city and the complex is a major success story for Liverpool.
“We want to build on the momentum of its success, including hosting Eurovision, which is why this work is so vitally important for not just ACC Liverpool, but our wider visitor economy.
“We are funding the cost of these works, which fall under the original lease arrangements, to ensure ACC Liverpool can continue to deliver top quality events and conferences.”
In December ACC Liverpool revealed financial figures for the 12 months to March 31, 2023. It revealed a turnover of £30m, a big increase from the £18.5m reported for the previous year when it was still being heavily impacted by the COVID pandemic.
ACC, which employs around 250 people, also reported pre-tax losses of £1.76m for the 12-month period against pre-tax losses of £4.3m for the previous year.
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Although the council is funding the latest works under its original management agreement, future improvements will be funded directly by ACC Liverpool under a new lease arrangement agreed in 2023.
And ACC Liverpool has also reduced the £7.1m owed to the council by £3.46m. A repayment plan for outstanding rent largely due to the COVID-19 pandemic has been agreed.
The council will also provide a loan as part of its capital programme to refurbish the Pullman Hotel in 2025/26, which will be repaid after the rent arrears have been cleared.