An ambitious film studios development linked to Netflix has been thrown into doubt as bosses have failed to secure an operator to run the site.

The streaming giant was expected to make Ashford's abandoned Newtown railway works its UK base as part of a £250m redevelopment of the 12-acre plot.

But a huge question mark now hangs over the project as bosses say the four potential operators interested in the scheme have all failed to provide a "viable business proposition".

Ashford International Development Company (AIDC) - 65% owned by Ashford Borough Council (ABC) and 35% by developers Quinn Estates - is behind the plans, for which they received £14.7 million of Levelling Up funding from the government in 2021.

The project, which Amazon, Disney and HBO have also been linked to in previous years, is set to include four film studios and 303 flats, as well as a base for East Kent College and a hotel.

There is still £8m of Levelling Up funding for the council to spend at the site - but they must do so by March next year under government rules.

ABC leader Cllr Noel Ovenden (Ashford Independents) confirmed this week how there has been interest in the development, although it remains unclear whether Netflix was one of the companies to come forward.

“There have so far been four potential studio operators on that site, none of them have come up with a viable business proposition to make this work," Cllr Ovenden said.

“The last one that we spoke to - because of the pressure that is on studio operators going forward - has actually gone bankrupt since we decided we would not move forward on that.”

Cllr Ovenden's comments came at a meeting of the authority's cabinet on Thursday.

Former ABC leader Cllr Paul Bartlett (Con) asked: “Do I take it from what I’ve heard that the studios will now not proceed at Newtown?”

But Cllr Ovenden described this as “quite a leap,” adding: “We cannot and will not stop the project, but it might change its direction if the viability of the project has to change direction in order to deliver it, and deliver it is what we will do in one way shape or form.”

Cllr Diccon Spain (Lab) pressed the leader, adding: “Securing a studio operator is absolutely critical to this project and the viability of it.

“Having an operator at a studio project like this is equivalent to having an engine in a car you can't have a viable operation without that.”

Cllr Ovenden, who has led an Ashford Independents/Green Party coalition since last year, said he "begged to disagree as the studios are the crucial part of this project".

"The studio element of it was brought forward in the way of regeneration of the site,” he said.

Work started on site in February 2022, but concerns were raised earlier this month over the demolition of historic lean-to buildings connected to abandoned engine sheds.

The Victorian engine sheds are one of the UK's longest listed buildings, stretching across 350 metres.

They are set to be converted into 303 flats as part of the scheme, with the four studios being built opposite.

But when asked by Cllr Sally Gathern (Lab) about a “plan B” for the site if the studios do not go ahead, Cllr Ovenden said if he were to “go out on a limb” it would be housing.

He said the plot had previously received planning permission for hundreds of homes but this has since expired.

After the meeting, Cllr Ovenden said: “What I don’t want Ashford to become is a dormitory for London; we need people from Ashford and their families to continue living in Ashford.”

However, Cllr Brendan Chilton, Ashford's Labour group leader, said: “The Ashford Independents-Green council is being extremely evasive over whether this project is going ahead.

“All of the documentation it is producing suggests it isn’t, it’s time it comes clean and tells the people of Ashford whether or not this key project at Newtown is going ahead.

“This administration committed to delivering the key infrastructure projects in the previous Local Plan which included the delivery of the creative sector at the Newtown works development.

“The people of Newtown are fed up with looking at a building site and they want to see some action in that area.”

Last year, when under Conservative control, ABC loaned £50m to AIDC for “for the construction of the studios and workshop space”.

But AIDC says nutrient neutrality rules connected to Stodmarsh Nature Reserve near Canterbury have delayed the scheme in recent years, as well as strikes in the TV and film industry.

The rules are intended to make sure that building new homes does not alter the fine balance of chemicals in protected bodies of water in a way which will damage the ecosystem.

AIDC says it is now planning to use the remaining Levelling Up funding on work to the five listed buildings on the site, including the clocktower in Newtown Road.

Company chairman Cllr Peter Feacey (Con) said: “Although there have been some significant delays to the original programme for this development - with the major driving factor behind them due to nutrient neutrality - substantial works have still been undertaken during the past few years.

“With the challenges of bringing forward both the residential and film and TV studios on this site, moving forward with these works will still protect the heritage of the site, by enabling earlier restoration works to the five listed buildings on the site, and the ability for the educational space [the East Kent College facility] to then be delivered later on through the overall wider development funding.”

In a further statement, an AIDC spokesman said there is “still a long way to go” with the scheme.

“As highlighted at a recent ABC cabinet meeting, Ashford International Studios has the potential to deliver some real benefits to the borough, but there remains many challenges which still need to be met,” he said.

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“Specifically, the challenges around the film and TV industry with the writers and actors’ strikes over the last 18 months has significantly impacted interest in building new studios during this period.

“This has affected the whole industry, and in terms of our scheme specifically it has affected the demand for regional film studios so despite a great deal of effort, it has proven difficult to create interest in the marketplace.

“There has been a lot of interest in the site, however economic conditions have been difficult but we will continue to explore opportunities for film studios.”