Plans for a new luxury bed and breakfast have been scrapped.

There was huge opposition to Arun District Council's plan to invest almost £500,000 in the project which would have seen the redevelopment of a car park in River Road, Arundel.

Hundreds of residents signed a letter written by the TaxPayers’ Alliance to Councillor Grant Roberts, who was at the time the local representative for the area and who also sat on the economy committee, raising concerns about the proposed scheme.

The letter said the plan was “high risk”, an “inappropriate” use of money and that the figures used to justify the scheme were incorrect.

“There is a real risk that this investment fails, given the highly seasonal nature of UK tourism and the luxury nature of the proposed property,” it said.

The Argus: A member of the Taxpayers' Alliance campaigning against the plan in Arundel

“The figures used to justify the investment assume a 60 per cent occupancy at £500 a night, despite other bed and breakfasts only being occupied for 30 per cent of the year at £200 a night.

“The £486,000 figure has been questioned by local builders, who have provided figures of £700,000 as a more realistic cost estimate.

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“The council has ignored a residents’ survey which showed unanimous opposition to the proposal.”

Arun District Council said it had wanted to transform the site to boost the local economy but that rising costs scuppered the plan.

A council spokesman said: “Arun District Council’s economy committee reviewed the updated business case for constructing a unit of self-catering holiday accommodation in River Road, Arundel.

“The council’s original aim in taking this scheme forward was to provide a revenue stream to support other important council services and to enhance the visitor economy.

“Due to a number of factors affecting costs and revenues, the projected surplus was significantly reduced on those originally expected and the decision was taken not to proceed. The council will be undertaking feasibility work on alternative uses for the site and consider them at a meeting of the committee next year.”

Conor Holohan, media campaign manager of the TaxPayers' Alliance, said the council should consider using the funds to freeze council tax instead.

“Residents will be relieved that this bonkers scheme is being scrapped,” he said.

“The numbers never added up, and local taxpayers were rightly worried they would be left to pick up the pieces when it all went wrong.”