Devizes councillors have expressed shock and fury that the town could lose £600,000 funding promised to upgrade the Shambles market hall.

Kennet District Council promised the funding at its meeting of the community development executive committee in June last year.

But because the work was not carried out before the district council was absorbed in the new Wiltshire Council at the beginning of April. It means the money and the project are now back in the melting pot.

Coun Paula Winchcombe, who was chairman of the committee which made the original decision, said: “It is a disaster for the town that this important building will not receive the work it needs to assure its future.

“My concern is also what other projects are to be lost over this lack of clarity in the handing over of funding.”

Kennet originally approved £100,000 for essential repairs to the roof and to carry out a survey. The report found that extensive works were required to preserve the fabric of the building, including replacing the roof and high-level glazing in addition to the work already planned.

The new scheme also included new glazed entrances at the front, rear and side of the Grade II listed building.

The minutes of the meeting read: “Recommended: that the council approve a supplementary provision in the council’s capital budget of £600,000 plus the original £100,000 allocated for the financial year 2008/09 to refurbish the Shambles Market Hall.”

A spokesman for Wiltshire Council said: “Because it was found there was a lot more work to be done than originally thought, the work was not carried out before April 1.

“The money was then transferred to Wiltshire Council as part of a larger pot of money and it will fall to the new councillors to look at all bids. But the plans for the refurbishment still exist and will be put before councillors at the earliest opportunity.”

But the money was never ringfenced and there are no guarantees it will be returned to Devizes.

Caroline Butler, who runs Caroline’s Pantry in the Shambles, said: “I am very disappointed the work hasn’t been carried out. They have done some minor repairs, but what we really need is new doors at either end to stop the draught coming through.”

Coun Ray Parsons said: “Kennet earmarked that money for the Shambles and it is a surprise and disappointment to me that it is not happening.”

Coun Jeff Ody, who is also chairman of the Trust for Devizes, added: “The Shambles is a potentially big asset to the town. I would be extremely disappointed if that expenditure was in doubt.”