Riverstone Developments had lodged plans earlier this year for a 105-bedroom Premier Inn facility on land west of the town’s Bridge Road, across from the recycling centre.

The three-storey building, with restaurant and outside seating area, was promised to create 35 jobs in the community and provide a £1.6 million boost to the local economy in tourist spending.

The project had already evolved as a result of feedback from a public exhibition held in November and further discussions with officers at Perth & Kinross Council planning department.

However objections still arose, with SEPA suggesting that the project should not go ahead on what it described as a “pristine functional floodplain”.

Now the developers have removed the application, although no official reason has been provided.

Highland Perthshire councillor John Duff told The Courier: “I understand that issues raised both by SEPA and the council’s structures and flooding team in relation to the plans have highlighted a conflict with development plan policy.

“As a consequence, the applicant has withdrawn the application meantime to allow it to consider the concerns raised.”