Plans to install a permanent power supply for Cheltenham Ice Rink have hit a financial bump.

The council is working on proposals to host the event for at least another three years after it brought £1.6million to the town's economy.

It has submitted an application for the erection of temporary structures in Imperial Gardens for the next three festive periods.

New sponsorship deals are being explored and it is looking at ways to make the event more cost effective. This includes creating a permanent power provision in the gardens, which would also help the council achieve its net zero target.

However, the planning application submitted last week revealed the cost of this is estimated to be £650,000.

A letter from Gemma Bell, director of finance & assets for Cheltenham Borough Council, said: "We have grave reservations as to whether this represents best value for the council."

Engineering consultant Hydrock had been engaged to work on the "extremely complex project".

It found that as well as the capital cost there would be ongoing annual supply, maintenance and management costs, which would equate to £50,000 per year. This would not include the cost of electricity used.

The council is now working on what it hopes will be a "more affordable route" using surplus capacity in an existing substation adjacent to Imperial Square.

The 2021 ice rink was powered by a diesel generator with a planning condition that a mains electrical supply would be in use by 2023.

However, the council was not able to keep this promise and hydrotreated vegetable oil (HVO) generators and high-capacity batteries were used for the last two events.

This saw the 2024 ice rink use 12.2% of the fuel used by the 2021 event and a huge reduction in carbon emissions from 139.07 tonnes to 3.235 tonnes.

The council's application said this hybrid solution will be used for the next three years "or until such point that the event can be powered in its entirety from a fixed power supply in the park".

It added: "The fixed power solution remains an important corporate project."

If approved, the application will allow the council to build the ice rink and associated structures in the gardens and have them in place for a maximum period of 75 days between November to January in 2025/2026, 2026/2027, and 2027/2028.

It is keen to build on the economic boost provided by last winter's event.

The 2024 ice rink cost £371,000 to deliver and generated income of £307,000. A one-off contribution of £40,000 from the UK Shared Prosperity Fund left the council with a bill of £24,000.

The event attracted more than 30,000 visitors to Imperial Gardens over five weeks and saw an estimated £1.6m spent in Cheltenham, with around £530,000 directly related to the presence of the ice rink.

Cheltenham Borough Council said this meant it saw a return of approximately £22 per £1.

The application said: "In addition to enhancing Cheltenham's regional, national, and international profile, the event provides significant economic benefits by increasing footfall, supporting local businesses, and strengthening the town's Christmas offering.

"The independent economic impact evaluation has clearly demonstrated a positive impact for the town and its businesses."

It added: "Concerns raised about the energy usage and environmental impact following the 2021 ice rink have been addressed with significant improvements achieved in both 2023 and 2024, highlighting the importance that the council places on achieving net zero targets as a borough and serving as an inspiration for other event organisers who are considering battery power at their own events."

The application is due to be decided by July 7.