PLANS to build a £1m real ale pub in Chester-le-Street have been dropped.

Pub chain JD Wetherspoon had planned to open the pub on the site of a derelict car showroom in the town's Front Street, where a Chicago Rock Caf is also due to be built later this year.

The pub chain had been given planning permission, but withdrew its application for a drinks licence shortly before the hearing was due to be held yesterday.

The change of heart was prompted by that fact that the Watford company has recently opened a number of pubs in the North Durham area and did not think opening one in Chester-le-Street would be commercially viable.

The pub chain launched bars in Washington and Consett last year, a second in Sunderland and recently secured permission to open in North Road, Durham, on the site of the former Cheltenham and Gloucester Building Society office.

A group spokesman said the company had not ruled out looking for other sites in Chester-le-Street.

He said: "Looking at the whole scheme, we decided it wouldn't be commercially viable. It would cost too much and, as a result, we didn't want to waste the magistrates' time for a licence for something we might not want. We want to be in the town and we will look at other sites."

JD Wetherspoon is known for its no-music, no-television policy, its range of real ales and low drinks prices.

Durham Police had been expected to to contest the company's bid for a drinks licence, fearing it would lead to an increase in anti-social behaviour and nuisance to residents, and that it would stretch police resources.

Chief Inspector Laz Szomoru said: "I'm very pleased, certainly for Chester-le-Street, that Wetherspoons has withdrawn its application for the time being."

It is the second time JD Wetherspoon has dropped plans to build a pub on the site. The last time was in October 2000, when it also cited commercial reasons