Crewe's planned retail development is scrapped in favour of a park

Phase one of the Royal Arcade scheme is a new bus station and car park. Phase two was going to be leisure-led.

A park and play area are set to replace a planned leisure and retail development in a town centre.

Cheshire East Council has decided to consult on temporary uses for the remainder of its Royal Arcade site in Crewe.

The original idea was for a cinema and shops, once a new car park and bus station were complete.

"What we don't want is a hole in the ground and a gap," said councillor Nick Mannion.

Interest rate rises and the scrapping of HS2 to the railway town are being cited as some of the reasons for the change of plan.

A multi-storey car park and bus station, which make up part one of the scheme, are set to be completed by spring 2024.

A report to councillors said double-digit inflation had hit the build cost, investors were withdrawing from town centre schemes, and the loss of high-speed rail had also had an impact.

"It was quite clear the commercial part of the Royal Arcade site wasn't going to go forward unless the council paid for it entirely out of its own pocket," said Labour's Nick Mannion, vice chair of the council's economy and growth committee.

He added that was too much of a risk given the authority had severe financial problems.

If we built retail units, they could have stayed empty for a very long time, said councillor Nick Mannion

Ideas now being put forward to temporarily fill the space once the bus station and car park are finished include:

• A small "pocket" park

• A children's play area

• Hard landscaping for seasonal activities such as go-karting and trampolining

• Space for food and drink sales

• An outdoor exercise area

Longer term, some of the Royal Arcade site could be used for affordable housing, said Mr Mannion.