More than £3 million is to be ploughed into bringing Telford ice rink up to scratch after plans to privatise it were abandoned.

Telford & Wrekin Council is hoping to borrow the cash for the renovations – meaning the rink in the town centre will make a loss for the next few years. Under the plans a soft play area will be built and the reception will be franchised out as a restaurant to make it more attractive to visitors.

Conservative councillors however, who had sought a private buyer for the rink before they lost control of the council, have criticised the plans at last night’s meeting of the full council.

Councillor Arnold England, the cabinet member for health and well-being, told the meeting that the authority would borrow the money for the renovation work.

He said it was expected to make a loss for a few years before it started to generate income. He said he expected the loans to be repaid by about 2018-19.

He said: “If you are going to make investment when you have had disinvestment, you are going to have to incur a loss, but then we get into a projected surplus.

“It will generate income but I am not only income driven, I am service driven. This is going to enhance the town.”

Councillor Steven Bentley said the council should make sure all other options for privatisation had been exhausted before money was borrowed to fund the revamp.

But Councillor England said that when the Conservative council tried to find a buyer, only one company showed an interest.

He said: “We challenged officers to see if they could come up with a plan to keep the ice rink in-house and to protect jobs and services.

“They were extremely adept at coming up with a package that we feel is acceptable.

This project not only protects the facility, it enhances it.”

Councillor Nigel Dugmore said he was unimpressed with the plans.

He said: “I would be interested to have details of the schemes that were rejected. If that’s the best, what were the others like?”