Councillors discuss future of Octagon Theatre in Yeovil

Somerset Council announced in October 2023 that it would be putting its £30m revamp of the Octagon Theatre on hold to reassess the business case in light of high inflation and interest rates.

The theatre has been closed since April 2023, with the council voting as part of its annual budget to keep the building shut until a new business case could be agreed.

The council has teased details of a scaled-down redevelopment costing £15m – with the running of the building passing to Yeovil Town Council once it reopens in time for the 2026 pantomime season.

But councillors have expressed concerns as to whether the building will be able to operate self-sufficiently when it reopens, without putting further pressure on Yeovil taxpayers.

Updated proposals were discussed by the council’s communities scrutiny committee when it met in Taunton on Wednesday (April 10).

Under the new plans, the theatre will be refurbished at a cost of £15m – of which £10m will come from a ring-fenced grant provided by the Department for Culture, Media and Sport (DCMS).

A further £3.75m will be provided by Yeovil Town Council, which agreed in principle to take over the running of the theatre as part of its annual budget setting (which also saw it take the reins at the Yeovil Country Park and the Yeovil Recreation Ground, known locally as Mudford Rec).

The remaining £1.25m will be sourced from other grants or “funds in hand”, with the council anticipating no further funding needing to be allocated to its existing capital programme (which was signed off in February).

The scaled-down project will still see a fly tower delivered, expanding the range of productions which could be staged at the venue, along with improvements to the auditorium, increased accessibility, a revamped front-of-house and catering facilities, better dressing rooms and some external landscaping.

The existing entrance to the Octagon Theatre in Yeovil. (Image: Somerset Council)

The planned increase in capacity from 622 and 900 will not be incorporated – though a “modest” increase in capacity within the existing footprint could be achieved.

The council will submit the final business case to DCMS later in the year, with a view to beginning construction work in 2025, with a view to the theatre reopening in the autumn of 2026, in time to host the annual Christmas pantomime.

Once the theatre has reopened, it will be managed by the town council – meaning any running costs after the rebuilding will come out of its share of the council tax precept.

Councillor Andy Kendall (whose Yeovil Central division includes the theatre) said: “I don’t know how we can say we have 100 per cent confidence in this after so many building projects in the county have gone over budget.”

Mr Hughes revealed that the contractor’s final bids for the original Octagon Theatre revamp were “in the region of £40m” – nearly double the original £23m budget set by South Somerset District Council when the project was first put forward.

Liz Dawson, the council’s cultural services officer, added: “Because we have done those intrusive surveys on the building, we are actually more well informed than some of our counterparts.

“We have a whole host of professional officers who are really close to this project.”

A freedom of information request has revealed that £1.7m has already been spent by the council on “pre-construction costs” surrounding the theatre.

This includes nearly £789,000 for detailed design work, more than £20,000 for surveys of the building (e.g. to locate any asbestos or defective concrete), more than £600,000 in “general costs” to South Somerset District Council (where the project originated) and nearly £281,000 in fees.

Councillor Andy Dingwall (who represents the Bridgwater East and Bawdrip division) questioned whether Yeovil Town Council should shoulder more of the risk for the revised project, given that it would end up being responsible for the venue’s long-term prosperity.

He said: “Is there a particular reason that we [Somerset Council] will take responsibility for the delivery of the project, rather than devolving it to the town council first?

“Should the project overspend, the responsibility of that would land on us, and therefore add money to the capital budget.”

Steve Hughes, the council’s leisure programme manager, said that every step would be taken to ensure the revised project would not go over-budget.

He said: “The risk does sit with this council; it is my job to ensure that risk doesn’t materialise.

“I’m the project manager of the Blue Anchor coastal defence scheme – that came in under budget, and I’m in the habit of ensuring this happens on every project.

“We’re not asking you to rubber-stamp the project today. It will come back through the council’s democratic process.”

Mr Dingwall persisted, questioning whether the council would end up with a theatre it could not afford to run if the town council pulled out late in the day.

He said: “We’ve heard there’s the in principle support from Yeovil Town Council of £3.75m and of devolution. It feels like the project is contingent on both of these.

“We won’t be in a position in 2026 to run a theatre as Somerset Council. When will that in principle decision be turned into a genuine agreement?

“A lot can change between 2024 and 2026 – how great is the risk that we get stuck with running the theatre at the end of this?”

Ms Dawson – who is overseeing the devolution of council services to Yeovil Town Council – said: “We meet with the town clerk every Friday to ensure we are on track with devolution.”

Mr Hughes then revealed: “It ironically costs us less to keep the building closed than the subsidy we provided when it was open.

“It currently costs us around £140,000 a year, while the subsidy when it was open was around £267,000 a year – it’s quite a perverse situation.”

Mr Hughes clarified that the £140,000 a year currently being spend on the Octagon included ongoing utility bills, running the heating ventilation systems and various forms of insurance – which ensure the building does not deteriorate before any improvement work begins.

Councillor Gwilym Wren, who chairs the committee, said that any revised proposals for the Octagon would need to ensure that any future subsidy from Yeovil Town Council would be minimal.

He said: “We need to be sure, on the other side of this, that the venue is going to wash its face and doesn’t need a six-figure subsidy from the town council.”

Further updates on the proposals will come before both this committee and the council’s executive committee later in the year.