AN inquiry is to be held into the circumstances behind the failed bid to create a £60m development in the historic heart of York.

The planning advice which led to City of York Council fighting an expensive public inquiry over Coppergate Riverside will come under particular scrutiny.

The scheme, for shops, apartments and restaurants between Clifford's Tower and Piccadilly, was rejected by the Government earlier this week.

The decision followed a nine-week public inquiry which cost the local authority in the region of £220,000.

Council leader Steve Galloway said a full report would be prepared on the circumstances leading up to the decision.

It would look into whether the authority's planning officers had correctly interpreted government planning guidance - guidance which Coun Galloway said contained some "grey areas".

If it turned out that they had not, he said there might have to be a review of the council's planning procedures in future.

Coun Galloway said: "I would expect that we would look very carefully at what the Secretary of State and the inspector have said. Particularly, we will look at the technical planning advice that we were given."

He indicated that the way future planning applications were handled in York could be affected.