Defra has withdrawn a waste infrastructure grant worth £169 million over 25 years for a Cory Wheelabrator energy from waste facility.
Norfolk County Council said that it was “disappointed” with Defra’s decision and comes just before councillors were due to debate the future of the contract the council signed with Cory Wheelabrator.
The leader of the council George Nobbs said: “The announcement clearly adds a new dimension to the debate about waste disposal in Norfolk.
“I have instructed officers to report back in time for the full council meeting, which I am glad is taking place, so that we have an informed debate around the issues. I have always recognised that people on all side of this debate have sincerely held views that need to be aired as part of this process.
“Nonetheless, the council is still bound by the contract entered into by the previous administration.
“Make no mistake, whichever way you choose to look at it, this is more bad news from this Government for Norfolk taxpayers.”