Page last updated at 10:51 GMT, Saturday, 20 June 2009 11:51 UK

Care home sale scheme collapses

Controversial plans to sell off six Leicestershire county council care homes have fallen through.

The homes in Barwell, Thurmaston, Loughborough, Melton, Kirby Muxloe and Lutterworth were to be sold to a not-for-profit consortium.

The move was opposed by many staff and relatives and a 10,000-signature petition was organised.

The county council has confirmed that financial pressures have forced the consortium to withdraw its bid.

Options 'reassessed'

Also included in the deal was the redevelopment of the Melton Silverdale learning disability hostel.

The council insisted the sell-off would save £650,000 a year to be reinvested in other services.

Officers have advised the council's cabinet to consider further options while the authority continues to run the homes.

David Sprason, cabinet member for Adult Social Care and Health, said: "All parties have been trying to find ways to ensure the benefits could be delivered.

"But due to the current financial climate forcing the consortium to withdraw, council officers are advising us that we cannot proceed and need to reassess our options."

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