West Berkshire Council has struck a deal whereby the cinema operator, Apollo, gets to keep parking receipts from the Kennet Centre multi-storey – including from a new evening charge – to cover the cost of the handout.

The council is hoping that the deal will quell widespread hostility among many taxpayers at the use of public funds to subsidise a commercial enterprise.

West Berkshire Executive Councillor Mike Rodger said it was a ‘win-win’ deal for the area, if his Liberal Democrat colleagues approves the idea next week.

“We will have at long last secured what the local community most wants, a cinema, and at no cost to council tax payers.

“The cinema is especially important to young people in the district and will be a catalyst for further economic growth and new jobs in the town. This is all part of our exciting and far-reaching vision for Newbury 2025.”

The project has already been delayed by two years, after the original operator went bankrupt, design changes, and protracted talks over the subsidy question. Mr Rodger now expects the new cinema to open late 2006.

As reported earlier on newbury.net, council managers are considering putting up all Newbury car parks by 10p an hour to cover the loss of revenue from the Cheap Street car park, which reverts back to the Kennet Centre next month.

The severe dent in earnings from car park tickets could also lead to the introduction of Sunday parking charges.

Mr Rodger added: “A combination of new car parking income, and the introduction of an evening charge would cover the agreed funding.”

Meanwhile, offers of assistance from fellow Liberal Democrats on Newbury and Thatcham Town Councils have been turned down by West Berkshire Council.

If the new arrangement is approved, workmen are expected on site in September.