North Yorkshire Council (NYC) said it "strongly refutes" proposed grounds for challenge of its controversial Station Gateway Scheme.
Last week, the Get Away campaign commenced a High Court legal challenge to oppose the £12.1million project.
The group alleges that NYC has failed to consider the wider impacts of the proposal and to consult fully with the public, rendering the traffic regulation orders (TROs) illegal.
However the council has hit back, saying the scheme has been subject to “extensive consultation” over many months, and they have gone “above and beyond” what is required.
North Yorkshire Council’s executive member for highways and transport, Cllr Keane Duncan, said:
"We have strongly refuted the proposed grounds for challenge to our traffic regulation orders.
"The proposed scheme has been subject to extensive consultation over many months, above and beyond what is required.
”We gained thousands of responses from the public across the three rounds and reflected on this feedback, amending the scheme to remove the most controversial elements.
“As a result, there will now be no reduction in lanes on Station Parade and no pedestrianisation.”
He added:
"The new scheme focusses on key benefits such as high-quality paving, the transformation of One Arch and a short bus lane to improve access to the station.
"In addition, we are seeking to coordinate the many traffic signals to help traffic flow better and reduce congestion.”
He continued:
"Sadly, old visualisations of the scheme are being shared online, referencing aspects which have already been removed.
“This is inevitably giving people an inaccurate and unhelpful view of it.”
The High Court legal challenge comes after an explosive new survey of almost 200 local businesses in Harrogate revealed that 91% of those questioned said they opposed the scheme.
Similar numbers said they felt that Station Gateway, which has been the source of much controversy for years, would not benefit the economy, visitors or local people.
Steven Baines, a local business owner and spokesperson for the Get Away campaign, said:
“Battle has now commenced! The legal challenge has been filed and issued by the court and our solicitors have served papers on both North Yorkshire Council and WYCA.
“Not only is there anger from the Harrogate business and trade community that this is the wrong scheme for the town but there is outrage at the way it was pushed through without adequate consultation.
“This is simply not good enough and this is why we want the whole matter to be out in the open and heard by the High Court so we can get to the bottom of what has gone on here.”
If the scheme does not go ahead, the council believes Harrogate will lose out on “multi-million-pound investment” to improve the town, as the funds would need to be returned to the Government.
Cllr Keane said:
"It is important to ensure people understand exactly what the revised scheme now includes, and the key fact that the funding is ring fenced.
“Conditions set by central government mean it cannot be diverted to other measures, like policing and healthcare, as has been suggested.
“If the scheme is blocked, Harrogate will lose out on this multi-million-pound investment to improve the town.
“The funds would need to be returned to government and spent elsewhere.
"We have made a democratic decision to support this scheme and we remain focussed on working to deliver it for the benefit of our residents and businesses."

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