Bill McCarthy, chief executive of City of York Council, said: “The council has been developing plans for its new office accommodation, working with English Heritage and other organisations to create a building that provides a 21st century solution to the council’s accommodation needs.

“Although we are disappointed with the response from English Heritage, we’re pleased that it recognises that the proposed building could be ‘a very impressive, sustainable and fit for purpose civic building.’ However, we recognise that, along with others, English Heritage is very concerned about the potential impact of the proposed building on the established historic environment around Hungate.

“For this reason the council will be withdrawing its planning application.

“It is too early to say how the council will take this issue forward, but we will be looking at our options urgently. In doing so we shall continue to focus on the significant benefits for our customers, council tax payers and council staff that a new HQ would bring to the city, as well as boosting the city centre economy and reducing the council's carbon footprint.”