SCOTLAND’S economic development agency been denied permission to demolish a landmark Victorian hospital, despite projections of a £25 million bill to bring it back into use.

At a hearing to decide on the future of Ruchill Hospital, it also emerged that Scottish Enterprise is paying £5000 a week to private security firms to guard the site, which houses A,B and C-listed structures, while maintenance of the buildings accounted for only a fraction of the ongoing costs.

At yesterday’s hearing, members of Glasgow City Council’s planning committee voted narrowly to refuse the application to bring all but the A-listed Water Tower down, even though the move had been recommended by the authority’s officers.

Several members of the committee have told The Herald they expect Scottish Enterprise to appeal the decision to ministers.

On the back of the decision, without a massive injection of public cash, the site will further deteriorate.

No developer from the private sector has expressed an interest in the site since Cala Homes walked away three years ago as the property market began its steep decline.

Since Scottish Enterprise acquired the site in 1999, it has spent in excess of £4.5m on maintenance and security. It made clear in 2009 it did not have the money for repairs and submitted an application for the demolition of the listed buildings, with the exception of the former water tower.

But yesterday the organisastion was accused by members of the committee of failing to properly market the site until seven years after taking ownership. It was also claimed the move to demolish parts of two of the buildings and pull down completely condemned units was not part of a previous agreement with the council.

A Scottish Enterprise spokeswoman said “Following the decision by Glasgow City Council to refuse per-mission for the demolition of buildings on the former Ruchill Hospital site, we will now need to carefully consider all of our available options.”