£3.7m plans to redevelop a derelict building on Ipswich waterfront into a leisure destination has been scrapped due to "no interest".

Ipswich Borough Council will not progress with plans for the former Paul's Silo which has stood empty for more than 20 years.

The council had proposed to invest £3.75m as part of the Government's £25m Town Fund scheme with potential uses including a climbing wall, adrenalin attractions, food hall and rooftop bar.

During Wednesday’s full council meeting, the borough’s leader Cllr Neil Macdonald announced the authority had decided to scrap the plans due to ‘no interest’ — to date,  £228,061 has been spent on the project.

Another of the projects cancelled is the creation of an Academy of Yacht Building, with close to £1.1 million being reallocated as a result.

Reallocating funding from both of these projects would result in just over £4.6 million from the Towns Fund being freed up.

Cllr Edward Phillips asked the council if the building was "in danger of becoming a millstone around our neck" due to extremely limited potential uses.

Leader of the council, Neil MacDonald assured the council officers and experts had worked tirelessly to find a solution.

He added: “It’s very disappointing that a viable solution which meets the agreed objectives and outcomes of the Towns Deal fund can’t be found.

“The intention will absolutely be for it not to become a millstone around the council’s neck.”

Cllr MacDonald also revealed an options appraisal would be put together and new plans for the site would be approved by executive members.

In his column for the Ipswich Star, leader Neil MacDonald said: "It is a complex industrial structure constructed in the 1960s for storing and handling malt. The major complication is that most of the building interior is occupied by individual silos cast into the building structure.

IBC have had discussions involving 34 different operators to develop the Silo as a leisure attraction. Unfortunately, it appears that this is impossible. It has been recommended to the Ipswich Towns Deal Board that the Silo project be closed as there are no operators with an interest in the property.

"The closure of the Pauls Silo project puts at risk the redevelopment of the wider St Peters Dock area."

In the column he said it would be great to unlock the potential of the primary entrance to the Waterfront.

He added that it had been recommended to the Towns Deal Board that some of the Silo money is passed to the Public Realm and Greening project, to extend their work to the Waterfront.

This money could be used to replace the existing IBC carpark, Cllr MacDonald said.