Plans to build the long-awaited Denny Eastern Access Road (DEAR) have suffered a setback after a housing developer won an appeal.
It has now been given an exemption from contributing financially to the project.
Mactaggart & Mickel, which is building homes on the site of the former Carrongrove paper mill in Stoneywood, near Denny, argued it should not have to contribute to DEAR as its development was a considerable distance from a roundabout requiring upgrading and would not be impacted by traffic from it.
The firm applied to Falkirk Council to remove its requirement to pay £550,000 towards the project, but members of the planning committee voted to reject the move in September last year.
Mactaggart & Mickel appealed and the Scottish Government Reporter has now overturned that decision.
A spokeswoman for the developer said: “The appeal was lodged on the grounds that there was no direct impact caused by the development on this particular roundabout and therefore no justification for a financial contribution from the company.”
Denny councillor Brian McCabe, who is calling for Falkirk Council to now explore alternative funding options for the construction of DEAR, said: “The recent decision by the Scottish Government Reporter has huge and immediate implications on the funding of DEAR and its impact on the communities of Denny and Dunipace.
“The council has no idea of how or when this funding ‘black hole’ will be handled.”
Council legal advisors are considering the decision and officers will report to the planning committee on May 28.