Shopkeepers have rejected the Business Improvement District scheme which could have brought £750,000 into the town over five years.

The month-long ballot began on October 29 and the result was announced on Monday.

BID development officer Shirley Sturzaker said: "It is very disappointing for businesses who work so hard to do something good for the town to have this result.

"I do hope that the people who campaigned so relentlessly against the BID happening have given thought to the consequences of their actions and realise that they have jeopardised the future of events as well as numerous other projects that could have helped the town evolve."

It is understood that 269 traders cast their views on the scheme, with 198 voting against it.

The BID process began two years ago with a study to decide if the town could benefit from the project and the attempt to introduce it has cost around £70,000.

This was funded by bodies including Warwick Castle, the Chamber of Trade and Warwick district and county councils.

Lindsey Roberts, who run Be Gorgeous in Smith Street, believes traders have missed an opportunity. She said: "I am gutted it hasn't gone through.

"Footfall in Warwick has dropped dramatically over the past six months to shockingly low levels.

"Warwick is on its knees and I feel that this is the final nail in the coffin."

The scheme has received mixed responses from traders since plans to introduce it were unveiled a year ago.

Sue Butcher, of Torry's DIY in West Street, said: "It is very disappointing and a missed opportunity for the town.

"I don't think people really thought about what they were going to get or what they might lose."

Mrs Butcher, who is also chairman of the town's Chamber Of Trade, hoped the project would improve the look and feel of the town.

She added: "There has been a lot of incorrect information spread around which was difficult to correct."

If it went ahead, BID was expected to generate £150,000 a year by charging traders an annual levy.

Around half of this money would have been spent on marketing and holding new events and festivals.

Other possible projects included a business support service and improving parking for traders and visitors.

In order to get through, the scheme needed backing from half the businesses in the town centre, including the Saltisford and Coten End.

More than 180 shopkeepers signed a petition against BID led by trader Alan Priestley, who runs Ink and Toner in Smith Street.

He said: "I think those who choose Warwick to trade from, recognise it is a beautiful, historic market town which has been here for over 500 years.

"The idea Warwick may not survive without a marketing and promotions budget is laughable."

Read more in today's Courier.