PLANS to transform former school classrooms in Banbury into homes for older people have been approved after council chiefs saved it from its spending freeze.

Oxfordshire County Council broke a moratorium on building projects to give £600,000 for the 70 apartments for the over 55s.

The Homes and Communities Agency (HCA) pledged £4.3m – but only if OCC put in its share.

In June, the council ordered a review of £500m worth of capital projects planned for the next five years in anticipation of major budget cuts.

This threw projects into doubt including a £2m redesign of Oxford’s Frideswide Square and the £3m extension of Thornhill Park-and-Ride.

Council spokesman Owen Morton said: “A number of specific schemes have been released from the capital programme review because they are being substantially funded by money that has been secured from sources external to the council.”

The development will also include a day centre at Old Stanbridge Hall at Banbury School in Ruskin Road.

David Edwards, director at the HCA in the south east, said: “This scheme was a priority for the local authority and it is excellent to see the building’s future is assured, and will continue to serve the Banbury community as it has done for more than 80 years.”

Work on the project is due to be completed by November next year.