Godalming High Street’s long-vacant Woolworths and M&Co building has been described as “a money pit that is getting worse” after further delays and more cash were needed before the council-owned site reopened.

Waverley Borough Council bought 69 High Street in 2022 with dreams of turning it into a restaurant with flats at the rear, but has come up against a litany of problems since then with the budget soaring from its original £2.2 million.

This week, officers told the overview and scrutiny committee they did not expect the restaurant, Loungers, to open until deep into next year – and that they would need more money to get the project over the line.

When pushed for how much the budget would go up, officers were unable to give a precise amount saying they were still reviewing the figures and would have a definitive number “in the future”.

The update left members of the opposition-chaired committee “shocked” and “very concerned” over the direction of travel.

Cllr Jane Austin, chair, said: “This is a sticky topic politically for the administration because it is costing an awful lot of money and is taking a very long time.”

She added: “The Loungers date has moved from 2023, 2024, then it was 2025 and now it’s 2026 and the flats – we still don’t even have a date, wow, it’s not good news and yet more money.”

She added: “I’m just pretty shocked actually by this, I’ve described it as a money pit before and it’s just getting worse. I’m sorry, I need to be honest.

“It just feels very concerning when we hear about more delays and more cost.”

Cllr Peter Martin (Conservative: Godalming Holloway) said: “It’s three and a half years since the acquisition and we are just about to start on site, providing we get council and executive approval.”

The meeting also heard that the homes still required further approvals, expected before the end of this year assuming the business case was approved and planning applications accepted.

In August last year, the council approved its own plans to redevelop part of the site in an effort to “breathe new life” into the retail unit, it said at the time.

The plans involved the partial demolition to the rear of the building and to refurbish what is to become the restaurant.

The homes, should they be built, will be social and affordable housing managed by the council.

The council said it stepped in to buy the prominent town centre location in an effort to “drive forward redevelopment, attract new investment, and build much needed homes.”