Oldham Coliseum Theatre's refurbishment will cost an extra £7m after widespread toxic asbestos and other serious building problems were discovered during surveys.

The total cost of the project to transform the Fairbottom Street building is now £17m. The theatre has been closed since 2023, and the new opening date is now expected to be 2027, a year later than originally planned.

Extensive surveys involving opening up the building's walls revealed the asbestos was far more widespread than first thought. Workers also found a previously unknown basement beneath the entrance foyer and structural defects under a staircase.

Oldham Council said the additional funding had been unanimously supported by political leaders. The money comes from grant funding set aside for such contingencies, so no council tax money is being used.

Matthew Bulmer, the council's project director, said: "You would expect to find asbestos in a building of this age but there is more of it and it's more widespread than we would have liked." He said the building's age and location near Yorkshire Street made the work complex.

Despite the setbacks, Mr Bulmer added: "The people of Oldham stood up and said we want it and the council stood behind them. With a project like this, there are bumps in the road but we will get it done."

The theatre company, Oldham Coliseum Theatre Limited, has continued to produce outreach work and smaller productions across the borough while the main venue is closed. The company recently appointed Nick Bagnall as creative director.

CEO Martina Murphy said they were focused on creating a theatre for the working class and were prepared for possible delays. "By the time the doors are open, we will be fully operational to give the people of Oldham what they deserve," she said.