Fears have been raised that the i360 could default on the latest repayment of its loan to the council, just months after a restructuring of the debt took place.

Councillors from the Labour group on Brighton and Hove City Council expressed “deep concern” about the potential of a “major default” by the seafront attraction on its next loan repayment, due to be paid later this month.

The landmark has an outstanding debt of more than £47 million to the council after missing a number of payments, some blamed on the pandemic and related restrictions.

Co-leader of the Labour group Carmen Appich said that the party’s councillors would “leave no stone unturned” to make sure taxpayers are not left out of pocket.

She said: “The ongoing impact on council finances is totally unacceptable, particularly in the face of savage cuts from central government and increased demand for services in this cost of living emergency, and we are deeply concerned about the potential of a major default on the next loan repayment.

“Labour never wanted the public purse to fund the i360 - it was a flawed business model from the outset, as we tried to convince our Green and Conservative colleagues of at the time.

“Our party’s councillors will leave no stone unturned in improving the governance of the i360 and examining every possible solution to salvaging some return on taxpayers’ ill-spent money.”

It comes just two months after Ian Hart, chief operating officer for the Brighton i360, defended the attraction’s finances despite not securing a new sponsor for the landmark to replace British Airways.

In an interview with The Argus, Mr Hart said: “Within our five-year plan we have produced, which the council have gone over, the numbers are robust and they do not include any sponsorship at all.

“In terms of our position, we are talking and have spoken with various parties about sponsorship. If we can get sponsorship, that’s a positive thing, but it is not essential.”

The i360 is due to make a loan repayment of £900,000 on December 31, to be followed by a repayment of £600,000 at the end of June next year.

A spokesman for Brighton and Hove City Council said: "We are working hard to ensure that the council recoups all of the money lent to Brighton i360 Ltd.

"Councillors from all three parties met with a member of the board on Monday to review a revived five-year business plan.

"Councillors will consider these proposals alongside a range of options at a future policy and resources committee.

"All decisions must be focused on ensuring the best outcome for Brighton and Hove residents. As such we will be working closely with all political parties and stakeholders.

"The i360 is still one of the city's most popular visitor attractions and contributes positively to the local economy.

"Like many businesses in the tourism and leisure sector, trading conditions are particularly challenging right now."

Brighton i360 was contacted for comment.