The i360 will default on the latest repayment of its multimillion-pound loan from the council.

A spokesman for the seafront attraction admitted the company was not in a “financial position” to make the £900,000 payment to Brighton and Hove City Council, which is due this month.

The landmark has an outstanding debt to the council of more than £47 million after missing a number of payments.

This latest default has been blamed on a “particularly challenging” last quarter of the year and declining visitor numbers due to the cost-of-living-crisis.

A council spokesman said councillors from the Green, Labour and Conservative parties were meeting this week to “consider options”.

“Brighton i360 has recently written to Brighton and Hove City Council to notify them that, regretfully, Brighton i360 will not be in a financial position to make the loan repayment of £900,000 at the end of December,” said a spokesman from the Brighton i360.

“The board of Brighton i360 are in active discussions with senior council officers regarding this subject.

“The visitor attraction had a strong first half of 2022 and was able to repay £700,000 to the council at the end of June 2022. 

“However, the last quarter of 2022 has been particularly challenging, and income has dropped below the original forecast set at the start of the year.

“The profound economic crisis the country is currently facing is clearly now impacting consumer discretionary spend.  Inevitably, the cost-of-living crisis has negatively affected visitor numbers to Brighton i360 and subsequent revenues and cash flow.

“We know that our visitor numbers are holding up a little better than the average for the paid attractions sector, so this gives us confidence that we are managing the business as well as possible during these challenging circumstances.  The business continues to generate an operating profit, so can meet all its operating costs.

“We are confident that once the economic situation starts to show signs of improving, we have a robust plan to continue to grow the business.”

A council spokesman said it was “working hard” to ensure it recoups all the money loaned to the i360.

Read more: Brighton i360's secret business case revealed after hapless officials hand it over

“Councillors from all three parties are meeting to consider options this week,” said the spokesman.  

“Councillors will then consider a range of options at a future policy and resources committee early in the New Year.

“All decisions must be focused on ensuring the best outcome for Brighton and Hove residents. As such we will be working closely with all political groups and stakeholders.  

“The i360 is still one of the city’s most popular visitor attractions and contributes positively to the local economy as well as having helped revitalise that area of the seafront. 

“Like many businesses in the tourism and leisure sector trading conditions are particularly challenging right now.”

In November, the attraction saw the departure of its sponsor British Airways, prompting a rebrand to Brighton i360.