South Holland District Council has decided to scrap its latest round of public consultation on the issue, which was due to start in September – because it will not be able to afford to build a new facility.

The authority had based its preferred option on a "robust" business case, hoping the sale of the Castle Field would generate enough capital to fund 55 per cent of the cost of building a new centre.

However, the downturn in the housing market means the land's value has dropped between 15 and 20 per cent compared to this time last year.

SHDC leisure portfolio holder Nick Worth told last night's full council meeting he had been advised that the sale would finance only around 40 per cent of a new build in the current climate.

See Nick Worth's full statement here.

At the next cabinet meeting he will recommend the council postpones the preferred option of replacing the leisure centre until the economic climate becomes more favourable.

At the meeting he said: "The improvement in leisure facilities remains one of the council's six priorities and this report will link with this year's budget process which will enable us to continue to invest in the Castle Sports Complex and swimming pool.

"In the last two years we have invested more than £135,000 in the Castle Field facilities to maintain them to the high standard they currently enjoy and we will continue to do so until we are in a position to replace them, in line with the 'in principle' decision already taken."

Coun Worth told the Spalding Guardian the council will review its asset management plan to see which areas of the centre need maintenance work – but there will be no wholesale refurbishment.

He said the council cannot know how long it will be before the housing markets returns to its recent high and said some figures quoted suggest it could be 2015 before levels match last year's.

Coun Worth added: "During that time we will be looking at alternative options such as the Building Schools for the Future programme and a community interest company.

"One of the current issues for us is the 2012 Olympics, which is not helping with funding. It may be beneficial for us to put it off until after that when there may be more money available and the cost of construction is cut."

What's your view on the decision?