NO further action should be taken to recover £780,000 of taxpayers’ money lost in a blunder over a gas pipe during town centre pedestrianisation works, a report has recommended.

A legal report costing £40,000 has concluded that Darlington Borough Council should not pursue legal proceedings against any party involved in a fiasco over a 100- year-old pipe, which was damaged in the works.

In light of the confidential report, conducted by solicitors Ward Hadaway and forensic engineers EC Harris, officers have recommended the council’s cabinet resolve to take no further action.

If the cabinet follows the recommendation at Tuesday’s meeting, it means the taxpayer will foot the £820,000 bill for the blunder and subsequent legal costs.

The council report, which will be distributed to cabinet members, said the solicitors’ report indicates there is insufficient evidence to support legal action against any party.

It concludes: “The council has previously, and on numerous occasions, acknowledged that this project has not been well-managed.

“Significant changes have been made as a result of this project to the council’s process for handling capital projects. The review does not support further action in relation to payments made.”

The Northern Echo has asked to see the legal report, which was commissioned after a recommendation from the council’s resources scrutiny committee, but has been told it is privileged information.

In January 2006, a digger hit a gas pipe the town centre, which cost the council £780,000 to divert.

In 1995, it was estimated that the controversial Pedestrian Heart scheme would cost £6.9m, funded by One North East and the borough council, but it eventually cost £9.22m.

Retired engineer Raymond Smith, 79, who lives in Hurworth, near Darlington, has spent nearly three years on a one-man crusade to prevent the taxpayer footing the bill.

After amassing files of correspondence and reports on the case and attending numerous meetings, he believes public money should not be used to pay the bill. He said last night he was disappointed with the recommendation, adding: “I am unhappy for the ratepayers – £780,000 is a lot of money. They would have been able to do a lot with that amount of money.”

A spokesman for the council said the Pedestrian Heart had been a resounding success, bringing high profile events, trade, employment and visitors to the town.

They also said the council had put in place a number of measures relating to project management of large-scale schemes since the conclusion of the works.