CITY council bosses have negotiated £2.4 million in grants from a government body for new homeless accommodation in York.

On Thursday top councillors accepted the grant, and heard the move was a “good news story” bringing better facilities in a good location, but at less cost to the authority.

An earlier scheme saw the council commit £3.5 million to replacing the Victorian buildings at Ordnance Lane with a new building, but that fell into disarray when builders called in liquidators in 2016.

The council then agreed to buy former office block James House, on James Street, in March last year, and has since then been looking at what work the building needs.

On Thursday, Cllr Andrew Waller congratulated staff on “strong-arming” Homes England into giving the grant. The new deal means the project cost goes up from £10.5 million to £12.4 million. The grant saves the local authority £540,000.