COUNCIL leaders have shelved a £1.5m sports centre at Skelton.

Members of Redcar and Cleveland Borough Council's cabinet took the decision on the planned Hollybush Activity Centre after being presented with a report highlighting spiralling costs, delays and the possible loss of Lottery backing.

They have also called for an investigation into the plans.

The cabinet was told that costs have risen from £1.5m to nearly £2.2m and the project is nine months behind schedule. Members also heard that nearly £1.4m of Lottery cash is under threat of being withdrawn if a funding gap is not bridged and there is still no deal to buy the required land.

Negotiations between the council and land owners Skelton and Gilling Estates are understood to be among issues likely to be raised in any inquiry.

Coun Dave McLuckie, who was involved in the initial talks, said he would welcome any investigation.

"It feels as if allegations have been made about myself and an inquiry would enable me to vindicate my good name. I have acted in the very best interests of Skelton and will continue to do so.

"However I'm disappointed and saddened the plan for Hollybush has been sidelined. I think they have effectively destroyed eight years of hard work by the community to build a first-class facility."

The council stressed it still hoped that the activity centre would be built.

Glyn Nightingale, lead councillor for corporate resources, said: "We need to look very carefully at what's been happening from the very start of this project. I'm afraid at this stage taking the scheme forward does not seem to be the most viable option."

Nick Raburn-Williams, of Skelton and Gilling Estates, confirmed there had been negotiations with the council.

Planning permission for the centrewas granted in 2000.