Controversial plans to house asylum seekers in a hotel in west Wales have been dropped by the Home Office.

The Stradey Park Hotel in Llanelli was due to house up to 241 people, a move that was opposed by the council and led to protests being held outside the building.

Carmarthenshire County Council said the Home Office has sent it written confirmation that the plan has been scrapped after the authority highlighted to the Government its concerns over rising community tensions.

Council leader Darren Price said: “I very much welcome the decision of the Home Office to withdraw its plans for the Stradey Park Hotel.

“It’s the right decision for the hotel and, more importantly, it’s the right decision for the people of Furnace.

“Now is the time for the community of Llanelli to come together, to heal from the experience of the past few months.

“On the issue of providing sanctuary to people in desperate need, I will reiterate Carmarthenshire County Council’s desire to continue to welcome our share of asylum seekers from countries such as Ukraine, Afghanistan and Syria to our county via the dispersal model which has worked successfully in Carmarthenshire for many years.”

The 77-bed site is said to have once hosted major stars from TV, film and sport, including the 1972 Llanelli rugby team that beat the All Blacks, and has also been a popular wedding venue, but was recently sold, leading to dozens of staff being made redundant.

Protesters from the community have been an almost permanent fixture at the hotel since the Home Office announced in June that it planned to house up to 241 asylum seekers there, but the action has also attracted a number of anti-immigrant groups from outside the area as well as counter-demonstrators, many camping outside.

Clashes between police and demonstrators have led to a number of arrests and several people have been charged with public order offences.