Borderlands funding approval for new Maltings project in Berwick that will now cost £33.4m

The Borderlands Partnership Board members gave the green light to the scheme that is set to transform the current venue on Eastern Lane, despite the overall cost going up to £33.4million.

A report to the meeting on September 23 set out why the project total had increased, but also why the recommendation was to approve the Borderlands Inclusive Growth Partnership contribution of £28.5million.

Northumberland County Council is set to fund the remaining £4.9million. This needs cabinet and then full council approval in the coming weeks.

And the Borderlands contribution also needs conditions to be met and the final review process to be concluded before the funding approval is 100% signed off.

The project includes bringing the main theatre, cafe bar and dining spaces together on the same floor, improving accessibility and maximising views across the River Tweed.

On the level above there is set to be further public spaces, rehearsal space and meeting rooms.

The lower floors are set to be repurposed to create one large main cinema and a smaller boutique cinema, accessed directly from Shoe Lane and via a lift or stairs from the car park level.

The report to the Borderlands Partnership Board meeting includes a project timeline, if all goes to plan, that would see development work start this November, an initial phased opening in February 2029 and a formal full opening in April 2029.

Since the original project outline business case was submitted to the UK Government and Borderlands Growth Deal Partnership in January 2021, the costs have significantly increased, with the report saying the original request to Borderlands was £15million and total cost was £21.4million in 2021 and the county council said the total project cost was £28.3million in March 2025.

The factors highlighted in the report included inflation, with conflict in the Middle East and UK tariffs on steel imports specific things mentioned, and complexity from “intrusive building surveys were only possible once the building was vacated by the Maltings in October 2025, as they involved physically opening parts of the building to examine hidden structural elements and materials”.

However, the report also included the following: “A clear rationale for investment has been provided, along with the evidenced need for the project.

“A comprehensive demand analysis has been undertaken, which has factored in the catchment area for the theatre and the future visitor numbers based on an assessment of the potential market.

“An independent business plan prepared by AMION Consultants includes demand analysis, operating costs, income projections and 10-year financial forecasts. The venue is forecast to operate with an annual surplus, evidencing its on-going viability and sustainability.

“The applicant has demonstrated the wider benefits of the project to the culture-led regeneration of Berwick-upon-Tweed and the catalytic effects that the introduction of a state-of-the-art theatre and cinema will provide to a wider audience.”

The building will remain in Northumberland County Council ownership and be leased to The Maltings Trust on a long-term peppercorn rent arrangement.

As well as the set of technical conditions needing to be met, the report says that Borderlands approval will be confirmed after “the final review process by external appraisers to review the application in line with the final submitted costs”.