A sports centre extension costing £11m has been called to question with its funding decision sitting in limbo.
North Norfolk District Council will not commit to building the new swimming pool and artificial pitch in Fakenham without assurances the government will pay for it.
The former government confirmed it was giving the market town £9.9m towards building the new swimming pool at its sports centre in Trap Lane.
However, the Ministry of Housing, Communities and Local Government postponed final sign off until after the election.
READ MORE: Fakenham £11m swimming pool project passes important hurdle
NNDC has been reimbursed the £650,000 it has already spent on the project but will not move further until finances for the next phase are reapproved by the new Labour government.
After chancellor Rachel Reeves' Commons speech there are concerns as to whether the project will be given the go-ahead.
Angela Glynn, Fakenham's mayor, said: "It would be a cruel blow to Fakenham if it is cancelled now.
"NNDC has invested much time, money and effort in the project, all of which would be wasted if it does not go ahead."
Cllr Christopher Cushing, leader of the opposition for North Norfolk District Council, said: "I am pleased the council has continued to make good progress with the design work for the new swimming pool.
"However, I am deeply concerned that the funding decision was put on hold because of the General Election and that this is now being reviewed by the new government.
"The pool is desperately needed as I believe Fakenham is the only major town in Norfolk without easy access to swimming facilities.”
An NNDC spokesman said: “Officers have had regular meetings with civil servants in respect of the levelling up project to discuss various aspects of the progress.
"We are not able to provide any further information at this point on the funding, but the council continues to progress the work to enable the submission of planning permission.”
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