A plan to turn a Witney industrial unit into a theatre has fallen through after councillors opted to rent the building to a business.

The Space, which hopes to gain charity status, wanted to convert the West Oxfordshire District Council-owned building off Station Lane into a new arts venue.

But members of the council’s cabinet decided to rent the property to a private company, because it provided the most financial benefit to council taxpayers.

Robin Martin-Oliver, the man behind the theatre project, said: “We were extremely disappointed. The idea is to bring first-class productions to Witney.

“It would put the town on the map artistically and culturally.

“Witney is a growing town and we thought there is a real need for cultural activity, especially with the Corn Exchange out of action.”

The Corn Exchange, in Market Square, was closed by Witney Town Council last November after a report showed it had “major” problems.

Mr Martin-Oliver added: “We are now looking to use existing venues until we can afford to take over a building and convert it into a theatre.”

The district council decision on the lease was taken at a confidential cabinet meeting, which was closed to the press and public.

Richard Langridge, the member for local economy and communities, said the council did have to consider more than just monetary value with its assets.

He added: “It was a difficult balance to strike and I think we did on this occasion. But it was a tough call.”