Plans to connect Cirencester back up to the national rail network have suffered a setback.
For the last few years, Cirencester Community Railway Project have been working on proposals for an 8km railway line to Kemble.
The scheme, estimated to cost £52million, would use new technology known as Very Light Rail and serve the hospital, Royal Agricultural University, Cirencester College, Deer Park School and Steadings development.
Money from the Gloucestershire Strategic Economic Development Fund, the Department for Transport’s (DfT) Restoring Your Railway fund and Cotswold District Council has helped progress the plans in recent years.
And a public consultation held in April revealed widespread public support, despite a few objections.
READ MORE: Support grows for £52m rail link in Cirencester
Recently the group has been working on the second phase of a feasibility study.
However, they have now learned that a bid for further funding from the DfT to produce an Outline Business Case has been unsuccessful.
Richard Gunner, from Cirencester Community Railway Project, said: "It's disappointing and will add delay to the scheme being implemented, although our work on the next stage will continue using existing funds."
"The DfT Review Panel has commented that the work to produce the Strategic Outline Business Case has not been wasted.
"It has taken the scheme forward and will enable development of a more complete case."
"The CCRP board has been greatly encouraged by the public support received during the Public Engagement Event in April, and by the response of others to the DfT's announcement."
"The project board will continue to build the business case in readiness for any funding opportunities that arise."
The group will now we working to address some of the comments made by the DfT Review Panel, including demonstrating in more detail the justification for a public transport link and developing the technical aspects including the bridge over the A429 at Kemble, the approach route to the town and the overall safety analysis.
Councillor Tony Berry, who is working with the Cirencester Community Railway group, said: “We are very disappointed to hear that the funding bid for the potential light railway has not been successful in this DfT funding round, however, we know the Cirencester Community Rail group are determined and will be continuing in the journey to bring a railway back to Cirencester, completing as much of the feasibility study as they can with the money still available.
"The council is continuing to work with the group and are also be looking at all the options for sustainable travel routes between Kemble and Cirencester and across the Cotswolds.”
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