Plans to turn Reading Gaol into an arts and culture hub have been rejected for a second time by the Ministry of Justice, which says the £2.6m offered by Reading Borough Council is too low.
To "seek best value for taxpayers", it will put the building back on the market. Money raised from the sale will be “reinvested into the justice system”.
Its first attempt to sell on the open market failed when the property developer behind the winning bid pulled out in November.
READ MORE: Banksy steps in as plans are revived for a cultural centre at Reading Gaol
The council’s new bid on behalf of the community emphasises the heritage and cultural value of the former prison, which “does not appear to have been given due consideration," it said.
The council's development blueprint for the site includes a heritage centre, a rooftop café, an innovation hub and space for theatre, dance, music, cinema and outdoor exhibitions, as well as new homes.