A SECOND High Court legal battle has been launched over a £1.4bn waste incinerator scheme.

Conservative-run North Yorkshire County Council has condemned two Tory ministers while seeking leave for a judicial review of a Government decision to withdraw £65m of funding for its project near Knaresborough.

The Department of Environment, Farming and Rural Affairs (DEFRA) u-turn in February threw the controversial scheme into doubt as the PFI credits would have gone towards the £250m cost of building the Allerton Park plant.

The council’s chief executive, Richard Flinton, said it believed Secretary of State for the Environment, Farming and Rural Affairs (DEFRA) Owen Paterson had not made the decision in a proper manner and had failed to follow DEFRA’s own criteria.

Mr Flinton said: “We also consider him to have failed to take account of the waste management obligations in the Waste Framework Directive; failed to consult with us on his decision; and failed to give proper reasons for his decision.”

North Yorkshire and City of York councils have already spent more than £6m on the scheme, which was projected to save up to £320m on waste management bills.

Mr Flinton said: “We were extremely disappointed when Parliamentary Under Secretary Lord de Mauley said that the Government would not change its decision to withdraw PFI credits for our waste management scheme.

“At no point, during a lengthy five-year procurement process, had the Government indicated that PFI funding would not be available.”

The council is continuing to examine the business case for the incinerator and if alternative funding can be found, it could still go ahead.

North Yorkshire Waste Action Group (NYWAG) and a number of parish councils launched a judicial review bid in March over the council’s decision to grant the incinerator planning permission, in an attempt to deliver a fatal blow to the scheme.

NYWAG spokesman Bob Schofield said the council’s bid for a judicial review highlighted its “profligacy with council taxpayers' money”.

He said: "This is another example of the blinkered arrogance of North Yorkshire County Council. "They have spent years not listening to us.

"We've told them this thing was not financially viable and they won't listen to the government."

It is thought, if the High Court grants both judicial reviews, they would be examined together.