COSTS for building Basildon's own "Silicon Valley" have skyrocketed by more than £3.7million.

Basildon Borough Council was successfully awarded almost £4.5m funding in March to turn the former Robins Cinema and British Heart Foundation Furniture Store in the town centre into a work and performance space for creative screen and digital industries.

The announcement was lauded by council leader Cllr Andrew Baggott who said the money would help the town attract businesses and freelancers working in the film, TV, gaming, VFX and animation sectors by creating the "Basildon equivalent of Silicon Valley".

But since receiving the grant offer the council has said the project cost estimates have ballooned from £4.6m to more than £8.2m.

There is now a requirement for the council to fund an additional £3.7m to deliver the project from its own coffers.

A statement to cabinet, which will discuss the plans on Tuesday, 6 June said: "Cabinet are now being asked to approve the revised budget envelope for the project and to approve the council entering into the funding agreement with Arts Council England to deliver this project.

"Entering into the funding agreement and approving the additional funding will provide a number of economic benefits for Basildon town centre.

"It will help to create new jobs and provide a catalyst for future economic growth. Following the decline of the popularity of retail within town centres, this investment will help to create a multi-use town centre, whilst bringing vacant units back into use and increasing footfall within the town."

The council has been working with partners (most notably Creative Estuary and Thames Estuary Production Corridor) to develop the Creative Centre for Screen and Digital Technologies project for the last year.

Through the project, Basildon Council and its partners are looking to establish a regionally distinctive screen and creative-digital-tech coworking and event space that will stimulate an 'industrial renaissance' in the borough, bring new visitors to the town centre and overall benefit Basildon town centre as a creative-tech town.

Under the revised cost model, the council estimates the benefits to cost ration will drops to around £1.50 rather than the £1.91 originally envisaged.

The council recommends entering a funding agreement adding: "That cabinet could acknowledge the revised funding position and provide approval to amend the capital programme as set out to transfer £3,772,000 towards delivery of the project.

"This will help achieve all the original goals of the project, bringing vacant units back into use for cultural regeneration to help create a mixed use town centre."