People behind the planned redevelopment of the former armaments dump at Broughton Moor have denied rumours that a huge housing complex will be built on the site for workers at a new nuclear power station.

It was mooted this week that the Derwent Forest site, a former Royal Naval Armaments Depot, could be used by multi-millionaire businessman Brian Scowcroft to build housing for thousands of workers needed for the planned Moorside power station near Sellafield.

Mr Scowcroft's company Land and Lakes is in talks over a possible development.

In an interview with the Financial Times, a munitions dump in Cumbria was mentioned, leading to speculation it could be the 1,050-acre Derwent Forest site.

Mr Scowcroft was among the bidders originally in talks with the county council and Allerdale council about possibly developing the site.

His plans for large holiday village lost out to Derwent Forest Development Consortium, which wants to develop the land into Utropia, an example of eco-friendly living and working.

Consortium chairman Nigel Catterson said there was no substance in the speculation about Mr Scowcroft building housing on the site.

Mr Catterson, who is also chairman of Britain's Energy Coast, added: "There are sites south of Whitehaven that he's been looking at.

"There are one or two ammunition dumps littered around.

"We have had no discussions with anyone other than those involved in our own plan."

Development of the site has been held up by extensive ground investigations and environmental issues but Mr Catterson hopes there will be tangible progress soon.

Planning permission has already been granted for 24 self-build housing plots near the edge of the site.

The proceeds from those would help to clean up the remainder of the site.

Story Homes is expected to begin work to install utilities at the plots in January and there have been 14 expressions of interest in them.

Firm plans for the whole site are still being worked on but possible future additions include an eco hotel, a festival site and a green-energy education centre.

Mr Scowcroft was unavailable to comment.