York's Castle Mills development delayed until 2023

The Castle Mills plan would include a block of flats and riverside park

A regeneration scheme in York faces a "significant delay" amid claims the council has "lost control".

Work on Castle Mills has stalled after City of York Council ended its contract with construction firm Wates

The decision means the project, which includes new apartments and a riverside park, will not start before mid-2023.

The council say the project, which will link to the Castle Gateway scheme, is making "significant progress" but critics say it is "drifting".

A council report said the decision to terminate the contract with Wates came after issues with Covid and rising costs, but also design points, according to the Local Democracy Reporting Service.

The Castle Gateway scheme would see a new public space on the site of Castle car park

The report states Castle Mills is "the primary funding stream for other elements of the masterplan" and the delay has also pushed back a decision on whether to build a new multi-storey car park on St George's Field, to replace Castle Car Park.

Deputy Council Leader Andy D'Agorne has called for a car park decision to be made now "so that residents and businesses are clear".

Labour leader, Councillor Claire Douglas, said: "The Lib Dem-Green council's Castle Gateway project is in all kinds of trouble, as this latest report makes clear.

"Ruling parties in York have completely lost control of what should be a visionary project well on its way to delivery.

"This project is drifting into a spiral of endless delays and cost increases. Will it ever become a reality?"

Councillor Nigel Ayre, executive member for finance and performance, said work on the Castle Gateway scheme is however "making significant progress".

On Thursday councillors will be asked to approve a £10m bid to the government's Levelling Up fund for the scheme, though a previous submission was unsuccessful, and York is the lowest priority area for Levelling Up investment.