A £6m bid to pave the way for future regeneration in Sudbury has been rejected by the government.

The seven figure sum was submitted to upgrade bus junctions around the Hamilton Road quarter, which would then enable the revamp of the Borehamgate Shopping Centre and bus station area.

Babergh District Council's submission for £6.36m of Levelling Up funding was turned down by Department for Levelling Up, Housing and Communities (DLUHC) and has been called disappointing by its head of economic growth.

It is not the end of the line for the plans, with the government confirming unsuccessful bidders can re-submit in future rounds.

Councillor Michael Holt, Babergh District Council’s Conservative cabinet member for economic growth, said: “While it is disappointing we did not receive funding through the Government’s Levelling Up Fund, our planned regeneration of the Hamilton Road area remains a priority for Babergh District Council.

“We are actively exploring alternative funding options and opportunities to deliver these important improvements for the benefit of the town.”

A meeting with the Government to gain feedback is expected soon.

“This government is creating more places that people are proud to call home by empowering local leaders, improving public services and regenerating our town centres and high streets,” a DLUHC spokeswoman said.

“Bids were subject to a rigorous assessment process to make sure the Levelling Up Fund delivers good value for money. Unsuccessful applicants will receive feedback and are able to try again in future rounds.”

Work on the Hamilton Road quarter featured in Sudbury’s Vision for Prosperity in 2018, which voiced aspirations for a modern facility featuring homes, a cinema, restaurants and other leisure and retail offerings.

A revised masterplan is due to be published later this year or early next year following changes to the Belle Vue Park plans – loosely linked to the Hamilton Road regeneration – after proposals for a hotel there fell though.

Suffolk County Council has confirmed it has not submitted its Levelling Up Funding bid for the Nacton Road/Ransomes roundabout in Ipswich.