A controversial £8.5m scheme to build a new link road in Moray has been scrapped.

Councillors voted 13 to 11 in favour of abandoning plans for the Western Link Road in Elgin.

Moray Council is facing a £6m funding gap in its budget over the next financial year, partly due to a drop in its government grant.

The road would have provided access to land earmarked for 450 new homes and the council could be forced to repay nearly £3m to developers and Grampian Housing Association as a result of the decision.

Plans for the link between the A96 and the Elgin Retail Park on Edgar Road had proved divisive.