AMBITIOUS plans to build a multi-million pound arts centre in Margate are to be scrapped after council chiefs revealed the costs had spiralled to nearly £50million.

Kent County Council confirmed mounting speculation about the fate of the Turner Centre today by announcing it is to abandon its original plan for it to be built alongside the pier at Margate.

Instead, there will be a more modest gallery on the former Rendezvous car park site in the town - which was one of the sites first earmarked as a possible location for the gallery in 1997.

Council chiefs conceded as much as £6million had already been spent on the centre but insisted that had not been money wasted.

However, they accepted mistakes had been made and that lessons learned would not be repeated. Some are already questioning why concerns about the complexities of building what was hailed as an iconic centre partially in the sea bed were not taken seriously.

The Turner Centre has been dogged by controversy since the plan to build it partially in the sea alongside the stone pier was first unveiled.

In October, KCC revealed the costs had soared to nearly £30million - four times the original estimate.

But the decision to pull the plug came after contractors came back and told the authority it would now cost close to £50million. The latest increase is understood to be related to eleventh-hour concerns that the steel structure needed re-inforcing because it could vibrate in its exposed position.

County council leader Paul Carter said the rising price was too much of a burden on the taxpayer. "The original design for Turner Contemporary was bold and exciting but a figure of nearly £50million for the gallery alone - with no guarantee the costs would not climb further - cannot be borne by a local authority acting as a protector for the public purse."

Pressed on how much money had been spent so far, he admitted it was "between £5million and £6million."

But he stressed Margate and Kent had already seen benefits from regeneration into the area.

"A significant proportion of the money we have spent is transferable to the new project. I believe we can deliver an outstanding and innovative architectural design for the new Turner scheme at an acceptable cost which will potentially facilitate other exciting opportunities," he said.

However, there was criticism from local Margate county councillor Clive Hart: "It was obvious to anyone with even the smallest knowledge of local history that building the Turner Contemporary in the sea was fraught with difficulties and that these extra and unnecessary issues would drive costs out of control.

"KCC has at last discovered some common sense. For the residents of Thanet I just hope it’s not too late."

SEEDA - the South East England Development Agency - said it supported KCC’s decision and that a pledge to commit £4million to the scheme would stay in place.

Chief executive Pam Alexander said: "While it is very disappointing rising costs have halted this project our key concern is to support the sustainable regeneration of Margate and we remain committed to this objective.