Up to £2m of taxpayers’ money could be used to fund a controversial development in Dorchester.

If the Charles Street project is to continue, West Dorset District Council will have to decide between the current scheme or an amended version at a substantial extra cost.

Council officers said in a report that no public funds would be required if the current development is supported, but that this could lead to the loss of businesses who have signed up to the scheme.

The report said: "The council has the choice of either waiting for the economy to improve, or accepting that changes be made to the scheme.

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"Waiting for the economy to improve could lead to the loss of key anchor tenants and it is therefore suggested that accepting changes to the scheme is the best way of achieving a development and securing over 600 jobs."

The amended scheme would see a planned hotel scrapped in favour of 24 apartments and the dropping of a basement car park development.

The report also warns that Waitrose and Marks and Spencer could withdraw.

The first phase of the scheme angered residents following the council’s decision to build its new headquarters on the site.

Despite calls for wider public involvement, the district council says it will not hold a public consultation before the decision is made.

Instead, plans will be put on display at a venue to be confirmed, with staff on hand to answer questions.

West Dorset District Council Technical Services Manager Steve Woollard said: "The council has worked hard to achieve a town centre development on the Charles Street site for some 30 years. The current proposals which have planning permission are the closest that has been achieved to success."

(IT/GK)