South oxfordshire District Council has delivered a "major blow" to Thame's hopes for substantial cash backing for a new health and fitness suite.

The community trust fund management committee has refused to back a bid for £1,480,000 for the suite recommended by its own community services committee.

It looks likely that Thame will get nothing at all.

Town clerk Pat Kingsnorth said: "This is a major blow to us. We are very disappointed indeed but will not comment further until negotiations have taken place with the district council before its full council meeting next week.

"The final decision will be made there with the whole council acting as trustees of the trust fund."

The money was to have been the district council's promised contribution to making the sports and arts centre in Oxford Road into a major leisure centre. The town council funded swimming pool is being built there and the fitness suite is part of the complex.

Thame is funding the pool through some of the £7.2m made by the sale of council land for housing.

The town council is committed to funding the whole development but was assured the district council would chip in with the fitness suite money.

A spokesman for the district council said: "The trust fund has been set up to provide money for projects which would not get under way without its help. The management committee felt the Thame project will go ahead anyway and the money is there to pay for it".