A major multi-million pound redevelopment of a town centre car park into offices and shops in Stafford will now go ahead after a detailed review.

Ruling Conservatives at Staffordshire County Council say they have transformed the £27 million Tipping Street project from one that would have cost taxpayers millions into one that will now make savings.

The Tories announced a full review of the scheme in August after taking control of the council following the elections in June.

County council leader Philip Atkins said the Tipping Street project had been turned “from a pig’s ear into a silver purse” following the review.

He said that when the former Labour administration signed the contract in April, two days before a ban on major decisions ahead of the election, the project would have cost taxpayers £500,000 a year. Now the county council claims it will save taxpayers a saving of £250,000 for the 30-year life of the buildings.

As part of the savings approximately 45 members of staff will lose their jobs as the county re-locates at least 1,500 workers from 18 buildings described as not “fit for purpose” into the new 158,000 sq ft county council headquarters.

The council has also managed to make savings on construction costs and maintenance as well as lower energy bills.

The council has employed accountancy firm Deloitte to examine the business case although it has refused to reveal how much this work cost.

Council leader Philip Atkins said he couldn’t comment on why the council had signed up to a plan which would have cost taxpayers money but he said: “There have been some robust conversations with officers and we now have a much better plan. It has been turned from a pig’s ear into a silk purse.

“To pull out of the scheme would have cost us many millions and we would have had still needed to do something about the 18 buildings anyway. The developer, Stofords, is taking all the risk, but the county council is providing the financial backing because we have the borrowing capacity.”

Stafford councillor Mark Winnington, who is the cabinet member responsible for the development added: “Every line of the business case has been scrutinised and savings identified in every area.

“Pulling out of this project would have incurred significant costs and have a devastating impact on the plans for Stafford town centre.

“The fact we have delivered savings for the taxpayer and real benefits for residents means we are now happy to give it our stamp of approval. We have taken ownership of this now.”

The offices would be above two blocks of shops and cafes and the decision has been welcomed by Stafford Borough Council leader Mike Heenan.

He said: “I am delighted the scheme is going ahead and is now financially viable.

“It will bring around 1,400 jobs into the town centre and will stimulate the economy of Stafford.”