Cheltenham Borough Council hands back £3-million to government.

Cheltenham Borough Council has handed back £3million to the Government after plans to build 200 homes on a car park fell through.

Portland Street Car Park, just outside the town centre, was proposed to have 200 homes built on it but now the authority and Homes England have decided to pull out from an agreement.

It is because the developer for the site, Freemans, had to “reassess its options” due to the coronavirus pandemic to build on the site, which had a number of factors affecting feasibility for residential development.

The developer put the site on the market as a car park in September 2020, the authority said, which put the scheme at risk as the Homes Infrastructure Funding (HiF) requires housing development and nothing else.

The £3m had to be “drawn down” by March 2022, the borough council said, adding that because there is “no potential development on the horizon” they have had to scrap the scheme to build the homes on the car park.

Council leader Rowena Hay (LD, X) said: “There was no option other than to hand the money back”.

She said: “We will move onwards and upwards to find other sites, we have got lots in a pipeline.

“If anyone does want to come forward then we will welcome it.”

Paul Jones, executive director finance and assets on the borough council, said: ‘’This is very disappointing for all parties.

“Although the council does not have ownership of the site, its officers have worked to try to support and facilitate the site for what it had hoped would be an impressive town centre, place shaping development and secured much needed affordable homes.’’