A PROJECT to regenerate an iconic grade II listed mill has suffered a huge setback after a £5m Heritage Lottery bid was rejected.

Leigh Building Preservation Trust applied for the cash to fund the work at the historic Leigh Spinners Mill — but it was rejected due to the size of the development.

The Trust plans to restore the mill — safeguarding 52 jobs — and create a further 150 jobs by redeveloping the upper floors for a mix of community, leisure, business and heritage use.

The mill, which was opened in 1915, is one of the largest cotton-spinning mills in Greater Manchester, and is still partly in use as a manufacturing mill.

Trevor Barton MBE, Chairman of Leigh Building Preservation Trust, said the funding decision was disappointing but he was delighted that lottery bosses had urged him to reapply for the cash.

He said: "This is obviously a massive disappointment, but this is absolutely not the end of the road for this project.

"We are heartened by the extremely positive feedback we received regarding our application, and have been encouraged by the Heritage Lottery Fund to reconsider the structure of the project and reapply.

"We are already on with the plan for a new submission that incorporates the committee’s feedback, and are looking for businesses in need of space to expand to contact us."

While the plan for the redevelopment of the twin mill buildings is being revised, the work to renovate the engine house, home to the largest horizontal twin cross-compound steam engine in the UK, will still go ahead.

With funding from Waste Recycling Environmental Ltd (WREN), English Heritage and Wigan Council, hazardous materials have been removed, the roof is currently being repaired, and the windows are being restored.

On its completion, the engine house will be available for viewing every weekend, on Heritage open Days and would be used for educational visits for schools and other organisations.

Mr Barton added: "We’re busy making plans to unveil the engine and the engine house during the national heritage open weekend in September.

"We have a fantastic group of engine enthusiasts safeguarding and restoring the engine and artefacts, and whilst we don’t expect it to be operating by then we want to welcome people into the building and show them the magnificent heritage we’re all working so hard to preserve.

"We’re positive about the future for Leigh Spinners Mill.

"We always knew the scale of this project would present a challenge, but we’re confident we can develop a business plan for the building that will not only meet the requirements of the funders, but also the needs of our community."