Developer Mountgrange said yesterday it had withdrawn an application which would have seen historic tenements on the Royal Mile completely demolished to make way for a "breakthrough" between Waverley Station and the Canongate.

The developers instead hope to connect a new public square to the Canongate through a series of arches.

This will protect the upper levels of the MacRae tenements, but campaigners have said the new proposals are still unacceptable, claiming that while the facade of the buildings will be retained, they still face demolition.

Sally Richardson, of the Save Our Old Town Campaign, said that the new application did not alter the fact that the buildings would be largely demolished.

"This application proposes a two-storey-high arcade. This claims to retain the upper two storeys of the front facade but is, effectively, the demolition of the building.

"The problem is that because this is a new application it may not seem to face the same opposition, because people who objected before might think their original objection still stands."

Julie Logan, of the Old Town Community Council, said the new plans were an improvement, as they at least helped to retain the "sense of containment" in the Canongate.

But she said: "The proposed development seeks consent for the demolition of all but the upper area of the existing front wall. All of the existing flats, roof structure and entire ground floor are to be demolished."

No-one from Mountgrange was available to comment.

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