People behind the planned development of housing in West Cumbria have denied rumours that the housing complex will be built on the Broughton Moor site for workers at a new nuclear power station.

It was mooted this week that the Derwent Forest site, a former Royal Naval Armaments Depot, could be used by multi-millionaire businessman Brian Scowcroft to build housing for thousands of workers needed for the planned Moorside power station near Sellafield.

In an interview with the Financial Times, a munitions dump in Cumbria was mentioned, leading to speculation it could be the 1,050-acre Derwent Forest site.

The chief executive of Land and Lakes, Richard Sidi has now issued a statement denying the company’s interest in the site and emphasising that the company is committed to a housing project for nuclear contractors in Cumbria.

Mr Sidi said: “Our vision is to develop a new wave of affordable, quality housing and associated infrastructure in west Cumbria which will specifically cater for the growing local workforce needs in the long term.

“Initially some of the housing will be offered as an option for the incoming construction workforce for the new Moorside nuclear power station.

“In common with our approach on Anglesey, we are focused on developing sites in a sustainable manner which will minimise the impact of a temporary workforce and maximise legacy for local communities.

“We had considered the Derwent Forest (Broughton Moor) site back in 2010 as a potential for our Cumbria development but dismissed it as being unsuitable for our needs later that year. We are now progressing plans for schemes in more appropriate locations.”

The development rights to the land were awarded to Derwent Forest Development Consortium, which wants to develop the land into Utropia, an example of eco-friendly living and working.

Consortium chairman Nigel Catterson and Richard Side the chief executive of Land and Lakes said there was no substance in the speculation about housing on the site.

Mr Catterson, who is also chairman of Britain's Energy Coast, added: "There are sites south of Whitehaven that he's been looking at.

"There are one or two ammunition dumps littered around.

"We have had no discussions with anyone other than those involved in our own plan."

Development of the site has been held up by extensive ground investigations and environmental issues but Mr Catterson hopes there will be tangible progress soon.