British Library Building (Hansard, 29 January 1987)

§ Mr. Luce

The Government have reviewed the future of the first two stages (1AA and 1AB) of this project. Their main features will be air-conditioned storage for the Library's collections, three reading rooms for rare books (including music and fine arts), western manuscripts, and oriental materials; and open access reading rooms for the science reference and information service. The costs of constructing these stages were originally estimated at £116 million in 1979 (the 1986 equivalent using the RPI is £193 million). These estimates, and others made in the intervening period, have proved to make insufficient provision for inflation. The revised estimates, which also cover increases due to changes in VAT regulations, the need to build in a higher risk contingency, and other minor changes, now stand at £218 million at 1986 prices. The Government are reviewing the arrangements for the management of the project, and improved arrangements will be introduced as soon as possible.

In view of the advantages to be gained from these stages of the project in bringing readers, books and staff together in a modern environment, the Government have decided to keep to the present plans for them, and the necessary financial provision is accordingly being made for this purpose. In the three years covered by the public expenditure White Paper (Cm. 56), the additional provision will be £4.1 million in 1987–88, £6.2 million in 1988–89 and £9.2 million in 1989–90. These increases will be met by additions to the arts and libraries programme within unchanged overall public expenditure totals since, although the sums had been anticipated at the time of the 1986 public expenditure survey, they had not been finally agreed pending the outcome of the review.