PLANS to demolish an “eye-sore” Austrian restaurant have been scrapped as developers backtracked on contributing to affordable housing.

The plan for a three-storey block of 13 flats on the site of the Old Vienna restaurant, on Eastwood were initially approved on the condition developers paid £224,000 towards affordable housing.

Now, the developer, SK Architects, has told the council it can “no longer afford” to hand over the cash, leaving the council no option but to refuse the plans.

The Old Vienna closed its doors in 2016 following a poor hygiene inspection and has been left an “absolute eyesore” since.

David Garston, Tory councillor for the ward, admitted something needs to be done to bring the site into use.

He said: “The building can’t stay derelict forever.

“It’s really disappointing we’re now at this stage.

“It’s sad, it’s disappointing the developer has pulled out.

“As part of the application it said the developer could afford it to pay the council the money.”

Previous applications for the site in Eastwood Road, Leigh, were refused on the grounds of the size of the building and the lack of affordable housing.

The latest application reduced the size of the development .

Funds would have also beeen allocated to expand Eastwood Academy, along with seven other secondary schools to help accommodate the increase in secondary pupils potentially caused by the new build.

Carole Mulroney, councillor in charge of planning and environment, insisted there was a future for the site.

She said: “The application was approved on grounds he would pay the council money for affordable homes.

“As there wasn’t any on site, it needed to be provided elsewhere.

“We had no reason to doubt that the money wouldn’t be paid.

“If the same application is submitted again, I’m sure it will have the same outcome.”

A new report from Southend Council reads: “The application does not include a formal undertaking to secure a suitable contribution towards off-site affordable housing provision to meet the demand in the area.”