A £1 billion plan to transform an old power station site by building a small town overlooking Southampton Water have been scrapped as they are 'not viable'. 

Fawley Waterside has today confirmed that planning applications for the redevelopment of the former Fawley Power Station site into 1,500 homes, plus commercial and community facilities and a school, have been formally withdrawn. 

They say a new future for the site will now need to be determined. 

(Image: Fawley Waterside)

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A spokesperson for developers Fawley Waterside said: "The decision to withdraw the applications has not been taken lightly but multiple assessments of the current scheme have shown that it is not viable.

"Fawley Waterside will continue working closely and collaboratively with both New Forest District Council and The New Forest National Park Authority to consider the most appropriate development strategy for the site."

It comes after the Daily Echo revealed the scheme was under review earlier this year.

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In a statement issued by the developers, Leader of New Forest District Council, Councillor Jill Cleary, added: “The council had been waiting for the signature of the applicant on the legal agreements for over a year, while the viability of the proposed vision for the site from Fawley Waterside Limited evidently became more at risk.

"As leader of the council, I am pleased that there is now clarity as to the state of play.

"We look forward to working with Fawley Waterside, and their newly appointed team, to consider viable alternative development options for the site, that help us deliver on our Corporate Plan aspirations for People, for Place, and for Prosperity.

"Recognising the Freeport designation of the site, and the recently committed review of the New Forest District Council local plan, it is timely for us all to be able to consider how best this site can help to deliver benefits to the New Forest community, economy and environment”.

New Forest National Park Authority Chairman David Bence explained that the site is, uniquely, entirely enclosed by the New Forest National Park and any future scheme will need to meet an exceptionally high standard of design and layout, taking into account its national park surroundings and delivering meaningful benefits for nature and wildlife.

(Image: Newsquest)

In 2017, a consortium unveiled proposals to provide 1,500 homes, plus a raft of commercial and community facilities, including a new primary school.

It published several CGIs showing a Venice-style development with elegant buildings overlooking a canal running through the middle of the site.

Fawley power station has already been demolished to make way for the scheme.