THE I360 made a loss of more than £5 million last year, the latest financial reports have revealed.

Brighton and Hove City Council are now owed almost £48 million as the attraction suffered another successive year in the red.

Just 195,754 people visited the attraction in the year ending June 2020 - around half the predicted target of 390,000.

A 29 page report released online on Tuesday outlines the full financial state of the 162-metre structure that was hit hard by enforced closures during the pandemic.

Brighton i360 Limited claimed £282,212 in government furlough pay during the pandemic, which saw it close March 2020, before reopening again in July, and closing once more in November.

After taking into account loan interest payable of £4,261,905 and net liabilities of £16,592,111 the attraction made a total loss of £5,156028.

The report comes just a month after councillors agreed to defer a £1.2 million loan repayment from the Brighton i360.

The committee was told that the i360 had performed well during the coronavirus pandemic – when it was able to operate – compared with other tourist attractions.

At the time, Green council leader Phelim Mac Cafferty said: “We still want the i360 to be successful. We want them to add to the rich set of destinations in our city that can help bring visitors not just once but twice and stay overnight as well.”

Over the past three years, more than £6 million in loan repayments have been missed because the i360 did not make enough money, with visitor numbers falling short of forecasts.

For the year to June 2022, forecast visitor numbers are 292,000. This is 10 per cent down lower than 2018-19, in part because fewer overseas visitors are expected.

In December 2019, councillors agreed to complete a “loan restructure” with the i360 – reducing the coming instalments to give the business a better chance of paying off the overall £36.2 million loan.

But the Covid lockdowns made it unrealistic to finalise the deal – and now, according to reports, interest on the i360’s debt has pushed the outstanding sum up to £41 million.

When the £4 million loan is transferred, the i360 will owe the council more than £45 million.

The loan restructure is expected to be completed before the next payment date in December.

A spokesperson from British Airways i360 said: “The majority of the financial loss is attributed to the depreciation charge and the outstanding loan repayments rather than to the general operation of the business. 

"Naturally, the pandemic and subsequent closure of the i360 negatively impacted the visitor numbers and revenues in the year ending 30 June 2020, so the operating profit was therefore reduced. 

"We are grateful to Brighton and Hove City Council for their agreement to defer the loan repayments and for their agreement to restructure the 25-year loan, the final details of which we will have later in the year.”