East Lindsey District Council was one of 15 bids short-listed to build one of the Government's eco-towns. It has now has withdrawn its application.

Instead the council will develop its work with local partners to address the key issues of affordable housing, skills, investment and coastal flood defences.

The proposed eco towns can range from 5,000 to 15,000 homes.

Leader of the Council, councillor Doreen Stephenson, said: "It was important to have had this debate and that we clearly identify key issues raised by the eco-town expression of interest.

"Working with our communities, our local and regional partners, we must now focus our efforts on securing a realistic, funded range of opportunities that will address the core issues of affordable housing, skill development and investment in the District."

The shortlist of eco-towns will be whittled down to 10 preferred sites.