Manchester City Council is set to more than double its contribution to delivering a new arts venue after the cost of project rose by nearly £20m.

The budget for delivering The Factory - one of the world's largest purpose-built cultural buildings - has now risen to £130.62m.

A report is suggesting the council increases its contribution to the project’s capital budget to £40.57m from £18.97m.

The council said the increase would be funded by the sale of council-owned land and would not impact on any other council budgets.

Sir Richard Leese, leader of Manchester City Council, said: ‘There is nothing like The Factory anywhere in Europe, let alone the UK and its game-changing impact for Manchester and the North of England cannot be overstated. That's why it has been able to attract so much central government funding and is such an exciting prospect.

‘Compromising on The Factory’s quality and ambition would have undermined its uniqueness, its purpose and the benefits it will bring.’

Sir Leese added that The Factory would create around 1,500 jobs and boost the city’s economy by £1.1bn in the first ten years alone.