THE University of Cumbria is going back to the drawing board after Premier Inn pulled out of plans to open a £5 million hotel in Ambleside with 30 new jobs.

The uni had hoped to sell the Hill Top property to Whitbread to help bankroll its £10 million redevelopment of its estate as it prepares to welcome 500 students next year.

But Premier Inn has walked away from developing the historic building after conservation issues were raised.

The company decided it was not 'commercially viable' going ahead and will now seek another site in the Lake District town.

The hotel giant had been planning to open a 60-room hotel near The Struggle with a 65-space car park.

Explaining the pull-out, Kevin Murray, for Premier Inn, said: “Central to this decision was the very constructive feedback from English Heritage on its desire for retaining the Hill Top building. We are grateful for all of the feedback we received during the consultation process and remain committed to bringing a new Premier Inn to Ambleside.”

Julie Ratcliffe, for the University of Cumbria, said: "Premier Inn states that it remains keen to open a hotel in Ambleside and will now be exploring other potential sites. In the light of this news, the university’s intention is to market Hill Top for sale again in the New Year."

Campaign group Future Ambleside welcomed the news.

It said: "Future Ambleside hope that the UofC will now consider new and reasonable options for the building, while continuing to maintain and safeguard its external and internal structure in a manner that are commensurate with its architectural and cultural significance as a “building of special character” within a designated Conservation Area, and with the declared interest shown by English Heritage.

Lakes MP Tim Farron congratulated Ambleside Lib Dem councillor Heidi Halliday , the Future Ambleside group and B&B owners, describing the decision as 'wonderful news'.

Mr Farron said: “We must be careful and remember that Premier Inn are still looking at a site within the town and I will be liaising with local residents about this and supporting them in any way I can."

Cllr Halliday added: "I would urge the university to go back to the original consultation documents where community suggestions for Hill Top included affordable housing and community or health uses. Finally, people struggle to stay in this area, so I would like to explore the option of affordable work units to enable people with good business ideas to set up. This would be a perfect opportunity to come up with a truly innovative scheme.”