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No charges will be brought following a five-year inquiry into alleged fraud over grants to refurbish shops and business premises in Pembrokeshire.

County councillors had raised concerns about payments of £60,000 to a developer in Pembroke Dock amid questions over whether restoration work had been carried out as agreed.

Dyfed-Powys Police said there was "insufficient evidence" for conviction.

Members had complained about the length of time the investigation was taking.

In 2014, Pembrokeshire County Council alerted police to what it called "irregularities relating to the tender" for work on a three-storey former bank in Pembroke Dock.

The money came from the Commercial Property Grants Scheme, an EU-backed project described by the council as a way to "revitalise and restore the rich heritage" of Pembroke and Pembroke Dock.

The Welsh Government suspended funding for the scheme in 2014, pending the inquiries.

A council spokesman said a letter from the force explaining the latest development was circulated by chief executive Ian Westley "in order to inform a discussion on the matter" at a meeting of the full council later this week.

"The letter details a decision by the Crown Prosecution Service that it has determined there is insufficient evidence to provide a realistic prospect of conviction concerning a fraud allegation in relation to the Commercial Property Grants Scheme," the spokesman told the Local Democracy Reporting Service.

Councillor Jacob Williams, one of two members who had raised concerns about the grants, said the letter had also been critical of the council's handling of the grant scheme.

He said it would "do little to instil general confidence in Pembrokeshire County Council's administration of public cash".

Councillors are due to discuss the matter on Thursday.