The body that donated £32 million of taxpayers’ money to the controversial Black Country arts centre The Public should be investigated, an MP said today.

Politicians and campaigners from Labour and the Tories have accused Arts Council England of throwing money at the West Bromwich venue, where costs were yesterday revealed to have reached £72 million. An audit report by KPMG has advised Sandwell Council to consider all its options if it cannot run the gallery on £1.1m a year, including demolition.

West Bromwich East MP Tom Watson accused the Arts Council of failing to live up to its responsibilities.

He said: “The Arts Council ran away and left hard working people in Sandwell to deal with this on their own.

“Frankly it’s left me wondering if it’s the Arts Council itself, rather than The Public, which should be mothballed.”

Mr Watson sits on the influential parliamentary watchdog the Select Committee for Culture, Media and Sport, which scrutinises the work of the Arts Council and other bodies.

The select committee could put pressure on the Government to disband the Arts Council if it was found to be at fault.

Mr Watson said: “The Arts Council can run but not hide.

“It has been involved since day one and carries more responsibility than anyone else. It must justify itself like everyone else but has remained silent.”

Campaign group the TaxPayers’ Alliance today renewed its calls for a public inquiry into the project.

Spokeswoman Fiona McEvoy said: “Something has gone dreadfully wrong and taxpayers need to know what happened to their money. The Arts Council is responsible for the projects it decides to back and I question whether it is spending that money in the right way.”

Sally Luton, regional executive director of the Arts Council in the West Midlands, said: “We made a final funding award to Sandwell Council against their latest business plan in July 2009.

“We are pleased to see that The Public is now open, and has realistic business milestones. We are encouraged by the progress The Public is making towards their ambitions.”