POTENTIAL funding problems have emerged for University Campus Suffolk's second phase development on Ipswich Waterfront, it emerged today.

POTENTIAL funding problems have emerged for University Campus Suffolk's second phase development on Ipswich Waterfront, it emerged today.

Following the official opening of the new landmark university building last September, University chiefs want to build a second massive development just 100 metres away on Orwell Quay.

The project has been given the green light by town planning chiefs but much of the estimated �25million cost needs to be in place before work can begin.

The Evening Star has learned that Ipswich Borough Council chiefs are struggling to decide whether to commit around �900,000 of funding as a result of financial pressure on the authority.

John Carnall, responsible for finance at the council, said the authority is currently considering the “various implications” of committing the cash.

“It is a very tough decision in the current economic climate. We are working on the budget and it is too early to say. We are aiming to keep council tax as low as possible considering current circumstances.”

Ipswich council, which donated �9million of land towards the first phase of development, is one of a number of partner organisations for UCS.

The university also hopes to generate funding from Suffolk County Council and national government.

Richard Lister, director of planning and resources at the university, said the organisation has not had in depth discussions with the council about funding and maintain a good relationship with the authority.

“Funding for the first phase took a lot of time and effort to put together. Clearly as we move into more difficult economic circumstances, putting together a funding package is more difficult.

“We are not immune from the outside world and we recognise that.”

He added that the hope is sufficient funding can be in place to get started on site in spring or early summer.

The impressive new six-storey structure would boast 15,000 sq metres of space and play host to the university's health

and science teaching programmes.

As well as lecture and seminar rooms the building will also house a restaurant and student union.