A National Audit Office (NAO) investigation into the cost of the new West Bromwich arts centre the Public has revealed that the budget for the institution has risen to £61.7m. When construction work began on the project in 2003, the estimated cost was £39m.

The NAO provided the budget data for the Conservative MEP Philip Bradbourn, who will "continue to monitor the future of the project", according to his spokesman.

As Museums Journal went to press, the art gallery inside the Public had still not opened. But a spokeswoman said a date would be announced shortly. Entry to the building is free, with a £6.95 charge for adults to the gallery.

The NAO's calculation covers construction fees and operational costs for three years. Funders include Arts Council England (£29.8m), the European Regional Development Fund (£8m) and Advantage West Midlands development agency (£7.1m).

It is understood that the remaining funding came from Sandwell Metropolitan Borough Council. The arts council is also allocating more than £500,000 a year for running costs until 2010-11.

The Public was proposed in 1993 by local group Jubilee Arts. Architect Will Alsop was commissioned to design the building in 1998, but
was replaced by Midlands architects Flannery & de la Pole. The scheme was declared insolvent in 2006, but Sandwell council provided extra funding and assumed responsibility for the building.

"The council has pressed on with the project long after it should have been clear that it was fundamentally flawed," said Matthew Elliott, chief executive of the independent campaign group, TaxPayers' Alliance. "If they can't make a go of it, they should consider selling it to someone who is better at managing such sites."

Sandwell council declined to comment.