A developer hopes plans for a major housing scheme on the former Staveley Works site will still go ahead – despite the cancellation of the long-awaited Staveley bypass.

The proposed new road was planned to run from the Sainsbury's roundabout in Chesterfield, across Works Road, to Hall Lane in Staveley, and would open up brownfield land for housing and commercial development. But the Department for Transport has now formally cancelled the £197m Chesterfield-Staveley Regeneration Route because they said it did not offer enough value for money for the taxpayer.

A spokesperson for developers Harworth said they were ‘disappointed’ by the Department for Transport's decision and would be 'exploring alternative solutions'.

The Staveley Works site is an allocated 150 hectare regeneration site in Chesterfield Borough Council’s Local Plan. Up to 1,500 new homes are planned across the site.

Dean Mayfield looks over the Staveley works site plans during an event in 2021.

placeholder image — Dean Mayfield looks over the Staveley works site plans during an event in 2021.

The Devonshire Group has an outline planning application pending consideration with Chesterfield Borough Council for up to 700 new homes, retail, leisure, hotel, employment and community uses, a primary school, and a canal marina.

The Harworth Group acquired a 133-acre site off Works Road and plan to deliver up to 600 new homes.

The Staveley Corridor is the largest regeneration opportunity within Chesterfield Borough.

A spokesperson for Harworth said "We are disappointed by the Department for Transport's decision to remove the Chesterfield Staveley Regeneration Route from the Major Road Network (MRN) and Large Local Majors (LLM) Programme. We have a planning application for a new 600-home development pending consideration by Chesterfield Borough Council and we will work with the Council and its partners to explore alternative solutions to make sure we can bring this brownfield site forwards to unlock new homes in a timely manner."

Staveley Works area illustrative masterplan

Councillor Tricia Gilby, Leader of Chesterfield Borough Council, said the council would continue to fight for the scheme to go ahead.

She added: "We recognise the significant concerns that have been raised following the decision not to proceed with the Chesterfield-Staveley Regeneration Route at this time. The scheme is a long-standing proposal to enable strong and sustainable economic growth for our borough, and the region.

“We’re currently working with our partners to fully understand the implications of the Government’s decision, and options for the future. All partners remain committed to supporting the long-term regeneration and growth of the area, including the delivery of new jobs, homes and infrastructure for local communities.”

The council added that as the housing application was going through the planning process it would be wrong to comment specifically on it as the planning authority.

The Devonshire Group has been approached for comment.