Plans are progressing on creating a new hotel on the site of Carlisle’s former Central Plaza Hotel - with a plan in place to address a multi-million pound “funding gap” now identified.

The site of the former Central Plaza Hotel, on Victoria Viaduct in Carlisle’s city centre, is now clear after a major demolition project earlier this year, following the declaration that the building was unsafe.

Following the demolition, suggestions were made that a new hotel could be built on the site of the former hotel, which had long been left derelict after falling into legal limbo, without an owner.

Now, Carlisle City Council leader John Mallinson has revealed that after more detailed plans were put together, the creation of a new hotel on the now empty site has been concluded to be “deliverable”.

However, as part of this more detailed plan-making, a “gap” in funding of about £5.5m has been identified.

But Mr Mallinson is set to outline to the council at its upcoming meeting next Tuesday that it is hoped this funding gap will be addressed by the council’s upcoming bid for a share of the Future High Streets Fund.

This major central Government fund - worth a total of £1bn - has been earmarked for investment into projects across the country that would help revitalise the high streets of 100 town and small city high streets.

In his report to fellow Carlisle city councillors circulated in advance of next Tuesday’s meeting, Mr Mallinson outlined that the funding decision on the Future High Streets Fund is expected “later this year”.

“This will inform the next steps with the redevelopment of the site,” he wrote.

Mr Mallinson outlined that there was now much more detailed projections in place on how the redevelopment of the city centre site would play out.

“The work to progress plans to redevelop the site continues and an updated appraisal hotel scheme has been prepared that includes further feasibility work and construction costings,” Mr Mallinson outlined. “This demonstrates a new hotel is deliverable but a with viability [or] gap funding requirement of around £5.5m.”

Mr Mallinson confirmed that the project, and this “gap funding ask”, has now formed part of the city council’s Future High Streets Fund bid to the Government.

“Putting the scheme through the fund also enable the Council to use the £2m expenditure on the site as co-funding - as the Council has effectively funded demolition element of the proposed scheme,” Mr Mallinson added.

Mr Mallinson said in July that a new hotel for the site was the “frontrunner” from a range of options considered for the site.

“We have a company interested who have long held an interest and that is for a hotel,” he said.

“We do think it is the most likely option and we think it would fit extremely well in that area.

“That will become what I believe will be a very interesting sector of the city.”