The controversial project to redevelop St Albans’ Westminster Lodge leisure centre has survived a major review of council spending – but only just.

St Albans District Council voted in February to spend more than £20 million of taxpayers’ money on the project – despite agreeing some £2.2 million of spending cuts at the same meeting.

The project, however, was thrown into doubt by the ascent to power of the Conservative Party, which, after strong gains in May’s council elections, succeeded in forming a minority administration and replaced the previous Liberal Democrat regime.

Council leader Julian Daly, a vocal opponent of the Westminster Lodge scheme during his time as opposition leader, had promised a root-and-branch review of the project and even ordered council officers to explore the ramifications of cancelling it entirely.

But his new Conservative administration agreed at a cabinet meeting this evening to press ahead with the scheme – mainly, Councillor Daly argued, because the costs of cancelling it would very nearly match the costs of completing it.

The estimated cost of cancelling the project altogether is estimated to be some £6 million. The costs of scaling it back to a simple renovation, meanwhile, would - when combined with money already spent - almost match the projected costs of the current scheme, it was claimed tonight.

The £20.5 million project, however, will be subject to some changes.

The council, responding to a vociferous community campaign, has asked contractors Willmott Dixon to examine the possibility of extending the size of the proposed 25 metre swimming pool – from eight lanes to ten lanes.

The new administration, suspicious of what it describes as over-optimistic membership assumptions by the council’s previous leadership, also argued that the current scheme may not break even during its lifetime – meaning not all the £16.8 million it plans to borrow will be met by centre revenue.

Based on membership numbers supplied by independent consultants – ten per cent lower than the existing estimate – the new administration plans to repay its loan over an extended 35-year period. Councillor Daly said this would ensure the longevity of the scheme and ensure at least a modest return for the council on its investment.

Councillor Daly, who admitted to “agonising” over the future of the scheme, said any changes could be achieved under the existing budget and promised any surplus would be ploughed back into the project.

Councillor Robert Donald, the public face of the project during his time as council leader, replied: “I don’t share the pessimism about this project . . . I do believe that once this is open it will be a flagship leisure facility for this district and will attract people from around the region.”

Members of the new Conservative cabinet, however, queued up to voice their concerns before reluctantly voting to continue the scheme. Councillor Teresa Heritage expressed concerns that it would become a “white elephant”.

Councillor Daniel Chichester-Miles, meanwhile, argued that many Conservative voters would expect a tougher line from the new administration.

The cabinet, however, agreed unanimously to press ahead with the scheme.