Council plans to demolish and rebuild 10 tower blocks have been scrapped – due to rocketing costs.

Leaders at Stoke-on-Trent City Council approved in principle the decision to replace the blocks of flats in Burslem, Hanley, Stoke and Blurton in 2023.

The blocks, which date back to the early 1970s, are showing signs of deterioration due to their age and 'defects' in their design.

But the redevelopment scheme is no longer considered financially viable because of rising construction and borrowing costs, and increased pressure on the council's housing revenue account.

Following a review by external consultants, the city council is now considering two alternative options – an 'enhanced' refurbishment of all 10 tower blocks, and a hybrid proposal which would see seven blocks refurbished and three demolished, with the land being 'banked' for future development.

According to a council report, the original demolition and rebuild scheme would now cost an estimated £113.3 million. The enhanced refurbishment option is expected to cost £42.4 million, while the hybrid option would cost £32.8 million.

The council is now set to carry out a consultation on the proposals with residents and stakeholders.

Labour cabinet members at the council, who inherited the demolition proposals from the previous Conservative administration, will discuss the options at their meeting on Tuesday, 8 September.

Councillor Duncan Walker, cabinet member for safe and resilient communities and housing, said: "Our priority is to provide safe, decent and sustainable homes for our tenants, both now and for future generations as well as continuing to increase the numbers of homes to meet the growing needs of the city's residents.

"We have had to move from the previous administration's original decision in January 2023 because it has been assessed as no longer financially viable by the independent appraisal.

"We have a responsibility to carefully consider the evidence and ensure we make decisions that protect both our housing stock and the long-term sustainability of the housing revenue account, and the options now on the table for consultation are realistic, practical and financially viable.

"The two potential options identified could deliver long-term benefits and assurance for residents, and it is vital that tenants, leaseholders and local communities help shape the next stage of the process."

Cllr Walker insisted that no final decision had been taken, and views of tenants, leaseholders and the city's wider tenants' forum would help shape any future recommendations.

The affected blocks are Arthur Cotton Court and Port Vale Court in Burslem; Boundary Court, Brookfield Court and Forest Court in Hanley; Dibden Court, Penkhull Court and Southern Court in Stoke; and Pedley Court and Robinson Court in Blurton.

They contain a total of 374 flats, with 59 of these leasehold and the rest being rented properties.

The proposed enhanced refurbishment of the blocks would include new liquid membrane roofs, new drainage systems, replacement windows, ventilation upgrades and complete sprinkler system coverage. According to the cabinet report, this would ensure their future for at least 25 years.

Under the hybrid option, the three 'lowest performing' blocks would be selected for demolition – this would result in a loss of 114 homes. Both of the options would require millions of pounds of borrowing, and each would have a revenue impact on the HRA of around £1 million a year.

But the original redevelopment option would require £99 million of borrowing, which 'cannot be managed with the HRA business plan', while the estimated £5 million a year revenue cost is 'not viable'.

The six-week consultation is set to run from 21 September to 2 November, after which a further report will be brought back to cabinet