Kingston Council wants to give another £200,000 to complete the fit-out of the Rose Theatre.

The shortfall is because of an increase in the costs of fitting out the theatre, which was given to Kingston Council as an empty shell by Charter Quay developer St George.

In June 2006, the executive agreed to set up a limited liability partnership between the council and Kingston University, with the council owning 95 per cent.

Two major contracts for fitting out the theatre are waiting to be awarded, but rising costs in the construction industry since 2004 mean the work is about 7 per cent more expensive than estimated.

There have been significant changes to the theatre's specification to offset the costs, but the theatre trust believes no more can be done without added investment. So to ensure the costs are met without further delay, the council's executive will consider increasing the funding of the partnership from £5million to £5.2million.

Conservative opposition councillors are outraged at an extra £200,000 of public money being sunk into the theatre and have called for a special scrutiny committee meeting tomorrow.

A Tory spokesman said: "We do not want the theatre to fail - we want it up and running so it can pay back what it owes the council, but it is hard to see how this can happen. The theatre is a Lib Dem folly."

The theatre trust has warned that to delay the financial decision until the next scheduled executive meeting on September 4 would delay the award of contracts and could increase costs by a further £200,000.

The estimated rise would be caused by extending some fixed costs, rescheduling of works contractors already on site, increased consultants fees and some tender prices would become invalid or subject to cost increase clauses.

Councillor Derek Osbourne, leader of the council, said: "We have called another executive meeting for the day after the scrutiny panel meeting as well so we can get this sorted as soon as possible.

"They would surely not want me to say that for the sake of £200,000 we are not going to finish a £5million investment."