Clackmannanshire Council has lost its bid to make a compulsory purchase of the dilapidated Alva Glen Hotel.

The local authority had sought to force the sale of the building from its private owner to create housing on the site.

However, following a hearing held in May, the Scottish Government has ruled in favour of current owners Murdoch Smith.

The SNP-led council issued a statement yesterday (Tuesday) claiming the loss of the compulsory purchase order (CPO) was a “win win” and that its pursuit of the land demonstrated its “strong and decisive action”.

The comments have been described as “laughable” by Murdoch Smith director Mike Mulraney.

Council leader Gary Womersley said, “We look forward to the new owners fulfilling the commitments they have made by completing the demolition of the hotel and building new housing on the cleared site.

“This will make a big improvement in Alva, complementing the significant investment that the council has already made at the Dalmore Centre and is bringing to the town on the former school site.

“Similarly, funds held by the council can now be reinstated to developing other previously agreed areas for improvement – as such it is a win win.” Reacting to the decision, Mr Mulraney said, “To say that I’m frustrated at the council’s behaviour would be putting it mildly.

“The council had every opportunity to withdraw the CPO. We gave them every commitment they asked for to show our willingness to work with them.

“I can only assume they have been hellbent on proceeding for political reasons.”