The Lib Dem executive at Teignbridge District Council today scrapped plans to use a government grant to upgrade local cinema options designed to help increase footfall in the town despite proposals being paid for by the government and the lost income would have helped reduce the District’s looming financial problems.

The decision comes as a body blow to those who want to see the town grow to meet the challenges of the next 20 years as Newton Abbot will grow to meet local housing needs as the same Lib Dem executive recently cancelled plans for new homes in Dawlish and Teignmouth resulting in more homes around Newton Abbot to meet local demand.

The  rejected plans included the retention of the old cinema building as a cultural hub, a new cinema and modernised market hall all of which are now in jeopardy as the poorly run council has a major budget deficit looming and the potential lost income from the government grants and reduced rental income from existing facilities will add to the districts £4million deficit next year making investment far more difficult.

Proposals for the conversion of the old cinema at a cost of up to £3.5million, without government financial support, depend on generating an income of over £100k per year to pay for this based on 25 year payback and inter government lending rates but the group proposing to develop the building have been unable to show a budget that will allow these costs to be met.

The future for Newton Abbot is now unclear.