WIRRAL councillors have voted to pull the plug on controversial plans to lend £26m to private developers seeking to build a luxury golf resort.

The plans, which aim to create a hotel, two golf courses and executive homes on a flood plain near Hoylake, have been the subject of borough-wide protests.

At a heated council meeting in February, a motion by the then ruling Labour group calling for a scrutiny committee to "consider all aspects of the scheme" was passed, causing upset to local residents.

Before the meeting took off, an estimated 250 people had gathered outside the town hall, with signs and banners urging the council to scrap the plans, which are to be led by developers Nicklaus Joint Venture Group (NJVG).

However, in what looks like dramatic change of direction, Labour members on Wirral Council's Business Overview and Scrutiny Committee voted unanimously against funding the Celtic Manor Resort.

The move comes after Labour lost overall control of Wirral Council at May's local elections – and council and group leader Phil Davies stepped down.

At a meeting held in private yesterday, Labour Councillors on the committee put forward a recommendation to 'not enter into a separate agreement to fund the Celtic Manor project at this time'.

This was proposed by Labour Councillor Jo Bird and seconded by fellow Labour Councillor Steve Foulkes.

Councillor Bird, who represents Bromborough and New Ferry, said: "We have listened carefully to the concerns of thousands of Wirral residents, expressed through protests and petitions, against the Hoylake Golf Resort proposals.

"The priorities for council investment are changing.

"As Labour councillors we are united in our opposition to investing in expensive and unnecessary developments when what Wirral people really need are decent and affordable homes to live in."

Members of the press and public were asked to leave before discussions took place, leading to criticism from members of the Stop the Hoylake Golf Resort Action Group, who said the council needed to be more open and transparent about the plans.

Speaking outside last night's closed meeting, Phil Simpson, Chair of the action group, said: "They should not be doing this behind closed doors. They should be open and honest with the public. They are invited to all our meetings."

The main opposition to the Hoylake Resort is that it's believed the plans would mean 160 homes being built on green belt land.

Mr Simpson warned councillors that approving the plans would have consequences on the ballot box, citing recent Labour losses at this year’s local elections.

Addressing hundreds of people outside the civic offices, campaigner Phil Simpson previously said: "The council has got into a position where they’ve got Redrow Homes backing them up.

"But we are saying we don’t want [the resort], and we don’t need it. We want to keep our green belt.

"We don’t want to see one house on any part of it. That goes for every single part of our borough."

The comments were made before an extraordinary council meeting discussing the plans in February.

Minutes from that meeting say elected members noted the concerns raised by local residents.

However, they said there were many potential financial and economic benefits of the proposed scheme, including 300 jobs, apprenticeship opportunities, up to £40m in one-off payments, and £1m to the Council in increased revenue every year to be invested in public services.

They also argued there was wider potential benefits of the scheme, including revitalising the Hoylake High street and providing a huge boost to the visitor economy throughout the borough.

However they agreed it would be "inappropriate" to make a decision without the full facts, and asked the relevant Scrutiny Committee to hold a special meeting to consider all aspects of the scheme once negotiations had reached a point where a clear proposition could be placed before Members.

Wirral Council said holding that scrutiny meeting in private on Thursday was justified, because they were discussing financial plans containing commercially sensitive information.

The scrutiny committee don't have decision making powers, and are recommending that the council's decision making group should refuse to lend £26million to developers Celtic Manor.

The council's minority Labour-controlled cabinet will decide whether or not to go ahead with the possible loan on Monday, July 8.