Tax payers in Bradford on Avon could face a hike in their future bills after the town council decided to go ahead with a £400,000 revamp of St Margaret’s Hall.

Under the plan the town council-owned building, which also houses its offices, would become a more impressive entertainment venue, with an upgraded stage, retractable seating, improved lighting and heating system and a much-improved backstage area.

It is hoped the project will help bring in more revenue as the building currently runs at a loss and needs a £5,000 annual subsidy from the town council to cover the day-to-day running costs.

Councillors backed the project at an extraordinary meeting on Tuesday, but some raised concerns over the potential increase in the council tax precept.

Options to finance the project include taking out a low-interest loan, applying for Lottery funding and general community fundraising.

If the council opts to take out a loan of £365,000, as £30,000 is already earmarked in its reserves, the precept could go up by 21p a week, or £10.77 a year for the average band D property.

Cllr Vicky Landell-Mills said at the meeting: “Discussions about this proposal have been going on for really quite a long time. It’s not a bolt from the blue project; it has been a very considered project and it has always been met with interest and a warm response.

“If we don’t go for it now we should put up or shut up.

“This hall will serve a purpose in the life of the town. It will have a tremendous benefit.”

Mayor Cllr Paul Skidmore added: “I think a precept of 21 pence extra per week is neither here nor there. I say go ahead with it.”

But deputy mayor Simon Fisher said: “It’s all expense, isn’t it? It’s pretty relevant to people having to scrape together money.”

Numerous groups use the hall, including the Bradford on Avon Film Society, the North & West Wiltshire National Trust Association, Bradford on Avon Lions, the Woodland Tots playgroup and the Old Tyme and Modern Sequence Dance Club.

Councillors voted unanimously in favour of the refurbishments, subject to the results of an acoustic study.

If approved, the next step will be to put in a planning application to West Wiltshire District Council and to consider the funding options.