The leader of Thanet council has downplayed an auditors’ report that says there could be a question mark over the long-term future of Dreamland.

Cllr Chris Wells (UKIP) said that given the challenges and financially difficulties faced by the amusement park it would have been a surprise had its auditors not flagged up the issue.

Last year, the council overspent its budget by £2m, having expected the costs to be in the region of £6m.

In their annual report on the council’s finances for 2015-16, Grant Thornton UK LLP, tells Thanet District Council (TDC) that the “long term viability of the (Dreamland) theme park may be open to question.”

It goes on to recommend the council bears in mind the sustainability of the Dreamland project “when reaching decision regarding the application of any further public funds to the scheme”.

The annual audit report also notes the council has overspent the Dreamland budget by £1.2 million and highlights the risk posed to the council by the “site operator (Sands Heritage Ltd) having gone into administration” earlier this summer.

Mr Wells said the warning was common sense: “While I believe they may be a necessary evil, I am not a natural sympathise for backward looking auditors.

"In this case, I doubt they can win. If they had not flagged a risk with an operator that has lapsed into insolvency arrangements twice in a year, they would have been rightly criticised. Now they have flagged the risk, they are criticised anyway.”

Former Thanet councillor Ian Driver said: “Allowing for diplomatic language, Grant Thornton’s comments about Dreamland amount to an extremely stark warning about the sustainability of the theme park.”

Dreamland is currently in administration after being hit by a series of setbacks, including the late opening of the centrepiece Scenic Railway.

It owes £2.9m but will continue trading following a creditors' meeting in August.

Visitor numbers have increased since the theme park moved to a free entry, pay-per-ride model in June.

The council has spent about £8.9m on the Dreamland project to date.