Plans to relocate a library in Derbyshire as part of a project to improve a town centre have been scrapped amid funding concerns.
Clay Cross Library, which is owned by Derbyshire County Council, had been set to move from Kenning Park to a new extension of the Derbyshire Adult and Community Education Service (DACES) building off Bailey's Square.
The plans were a central part of the Clay Cross Town Deal, a major regeneration scheme overseen by North East Derbyshire District Council.
However, the county council is now concerned that funding for the library's relocation to the town centre will not stretch far enough.
The leader of North East Derbyshire District Council, Nigel Barker, said he was "disappointed" by the decision and rejected concerns about funding.
The Labour-run authority had been given £24m in regeneration funding by the government in 2023 to improve Clay Cross.
The Town Deal project was originally slated for completion this month and is now several months overdue.
The proposed move was initially approved by the county council's cabinet in 2024 under the previous Conservative leadership.
However, the county council, now led by Reform UK, said in a statement that concerns have since been raised "around the achievability of the move, including fitting out the newly located library, with pressures on the funding available for the project from the Clay Cross Town Deal programme".
The statement added: "In addition, further challenges to the proposed move arose due to changes to the way DACES is funded.
"A public consultation into the future delivery of DACES has only recently closed and a decision on this is expected in the next few months."
The authority said it will continue to explore options for the library's future which could include a move into the town centre.
In December, county council leaders considered a new report into the library move as a result of the concerns.
A decision was made to delegate the final decision to senior officers and the council's leadership. It recommended that work on the library relocation should not continue.
The county council's cabinet member for health and communities, Dawn Taylor, blamed funding concerns for the decision, stating "it was clear that the funding available from the Town Deal programme for a full refit in its new location was not going to meet our expectations."
The district council's leader Nigel Barker said he did not understand the concerns around funding and rejected the suggestion there was "any shortfall in monies".
"We are really disappointed that the new Reform county council have gone back on this decision," he said.
"The district council is fully committed to carrying on the development of Clay Cross town.
"We shan't be leaving it half-done. There is money in the scheme to deliver it. We might just have to change the layout."
Barker said it was too early to say what the next steps were for the library.
He also said he did not believe there were any financial implications as a result of the decision.
The move adds to uncertainty around the scheme after leaders in North East Derbyshire conceded that other elements of the regeneration scheme are currently in limbo amid a legal dispute.
The contractors Inside Limited recently announced that it "will not be completing" the Clay Cross Town Centre regeneration project "due to ongoing contractual and financial disputes with North East Derbyshire District Council".
The council said it did not accept the contract had been "lawfully terminated" and was seeking to address the issues.
Some local businesses are calling for compensation from the council over its handling of the delayed works.