SOUTHAMPTON'S planned £10m arts complex at Northern Above Bar may have more poorly equipped spaces to display artworks than was previously envisaged, city leisure chiefs have admitted.

The city's university was supposed to be raising £1.5m to pay for the "fitting-out" costs for the prestigious scheme which is due to be completed in 2007 and will house art collections from the John Hansard Gallery - as well as performing arts spaces from the city's "Art Asia" group.

However, it was revealed at a meeting of the city council leader's standing scrutiny panel that just £1.375m supposed to be raised by the university had been found - leaving a funding shortfall of £125,550.

Quizzed by panel chairman, Councillor June Bridle, the council's arts development officer Christine Rawnsley admitted that fitting out the arts centre with high quality and robust lighting and sounds systems was a priority but city chiefs may have to forego installing such high quality flooring as they had originally hoped.

She said: "Perhaps we will not fully equip some of the spaces but the John Hansard Gallery could live with strip lighting in the second main performance space. We are beginning to bite the bullet on that one."

Panel members were told that a decision on Arts Council funding of £5m to help pay for the prestigious project - a key part of creating a so called "Arts Quarter" for the city - would be made in July this year.