A controversial regeneration scheme paused due to the rocky economic outlook will still go ahead, councillors have insisted.

Spending on the Prince Parade development, on a coastal site between Folkestone and Hythe, was paused this autumn after costs began to spiral amid strengthening financial headwinds.

Officers at Folkestone and Hythe District Council (FHDC) recommended putting the scheme on ice while investigations into the finances surrounding the project were carried out.

A report into the impact of turmoil in the leisure, energy and financial markets anticipated that if the project does not proceed the council would suffer a financial loss in the region of £4-5 million.

Despite the concerns over financing the redevelopment of the land, which will include a new leisure centre, yesterday the authority's cabinet agreed the work will still go ahead when market conditions improve.

Freedom Leisure, which has been selected to operate the new sports centre on the site, has said energy costs have increased by 110% for electricity and 184% for gas in the year since it tendered for the work.

FHDC leader Cllr David Monk said: "Building a leisure centre in 2022 has been made a lot more expensive by the uncertain economic conditions, exceptionally high inflationary pressures and rising energy costs caused by the war in Ukraine.

"These factors are not exclusive to the Princes Parade project.

"But what this decision does is reduce the immediate financial risks to the council while retaining the development value and community benefits of the project."

Hoardings erected around the boundary of the site will stay in place to ensure the site remains secure.

The footpath south of Sea View Bridge in Seabrook will remain open until works require it to be closed.

At a full council meeting on November 30 the council heard a petition signed by 311 people calling for the development to be completely abandoned in light of spiralling costs.

Chris Farrell, who has campaigned against the development consistently, presented the petition.

She said: "We're not talking about Monopoly money here, we already have the highest council tax in Kent.

"And while many are struggling to feed their family and pay their bills, Cllr David Monk is willing to saddle us with even more debt to finance his own recklessness."

She described the white hoarding which stands around the proposed site of the development as "a monument to one man's arrogance" and "David Monk's legacy to the people of Hythe".

A hotel, shops, green spaces, children’s play areas, a leisure centre with a swimming pool and 150 new homes are destined for the land between the sea and the Royal Military Canal.

Opponents of the scheme sought a judicial review of the plans in an attempt to stop the council building on the currently empty land, a popular walking spot, but they were unsuccessful.

The battle over the fate of Princes Parade has been hard-fought, with the plans subject to years of criticism, objections and protests from those living near to the site.