Councillors have voted to progress Blairgowrie Recreation Centre plans but have shelved Perth pool plans.
The PH20 project for a new pool and ice rink to replace Perth Leisure Pool and Dewars Centre has once again been sidelined by councillors.
Construction inflation has seen the estimated cost for PH20 skyrocket from £90 million to £110 million.
It was deemed by council officers to now be unaffordable given the council's ambitious capital programme. The programme includes costly projects such as Perth Museum, Perth High School and the Cross Tay Link Road - already under way and which have also soared in price.
On Wednesday, March 1 Perth and Kinross Council met to set the council's 2023/24 budget as part of a three-year financial plan.
Setting PKC's capital budget councillors rejected a recommendation to pause the long-awaited Blairgowrie Recreation Centre project which has been beset by delay after delay.
The cost has now soared by an additional £9.3million to £36 million.
SNP council leader Grant Laing told councillors: "This administration is determined to provide the people of East Perthshire what has long been promised. We are therefore rejecting the proposal to pause Blairgowrie Recreation Centre - committing to both funding the project and seeing it built as soon as possible.
"However, we reluctantly accept the proposal to defer PH20, given that this is a project very much in the planning stages. To mitigate this - as outlined within my revenue budget motion - we are funding a feasibility study to assess what capital monies are required across our leisure facilities. This is to ensure we can meet need across the council area, rather than simply in Perth."
Only the Labour group tabled an amendment to save PH20.
Bailie Alasdair Bailey questioned the SNP taking £150,000 from the earmarked reserves for the PH20 project - alongside dipping into other reserves - to avoid some cuts to PKC's revenue budget.
The Carse of Gowrie councillor told councillors: "It's not looking rosy for people who are fans of swimming. How are people to believe it [PH20] will ever come back if the SNP is raiding the design and development budget?"
Later tabling Labour's capital amendment to save PH20 Bailie Bailey said: "The pools at Perth see far far more footfall than bowling and curling combined. Therefore we propose going ahead with the pool and leaving £20 million on the table for curling and bowling towards improving their facilities."
But the amendment tabled by both Labour councillors was outvoted by 38 votes to two.
After the meeting Cllr Laing said: "PH20 has been a long-term ambition for our sports and leisure trust partners, Live Active Leisure, and the council. However, in an extremely challenging financial climate we have reluctantly agreed to pause this project for now."
He added: "This is a case of not yet, rather than not at all."
The approved SNP budget will also see £10 million invested in the Perth Eco-Innovation Park in a bid to diversify the Perth and Kinross economy and bring high-value jobs to the area.
Councillor Laing said: "This is an investment for the future. At a time of financial challenge, it demonstrates our confidence in all that Perth and Kinross has to offer to new and growing businesses and will put us in a positive position when the economy begins to recover."
The council has also set aside £4.4 million for repairs to the Garry Viaduct - a three-span road bridge over the Garry River and Highland Railway - close to Killiecrankie. An additional £2 million investment in bridges and structures was also agreed.
And £2 million was committed to create a new Gypsy/Traveller site in Perth on the edge of the Food and Drink Park at North Muirton.
