April 04 2001: The proposed Tally Ho arts centre is set to lose almost £300,000 during its first year of operation, according to official council papers.

Agenda papers for last night's resources committee say: "Upon opening, the business plan budgets show a turnover of over £1,100,000. Anticipated income from sales and a number of funding sources is shown, leaving a revenue deficit of £296,643."

This disclosure comes with councillors last night due to commit the first £170,000 of more than £600,000 council funding over three years.

Tories pounced on it as proof the controversial North Finchley project would be a "bottomless pit" for council cash.

Councillor Brian Salinger said: "It's quite unbelievable the drain this is going to place on resources in the future."

Labour councillor Danish Chopra, chairman of the resources committee, defended the project: "We have championed this development in order to open up the much-neglected borough arts scene to the whole community."