Dorset County Council planned to begin work on the A338 Bournemouth Spur Road in September.
Peter Finney, Dorset County Council Cabinet member for transport, called the decision "extremely disappointing".
Dorset County Council says repairing the A338 Bournemouth Spur Road is no longer cost effective.
The leader of Dorset County Council Angus Campbell has announced he will not stand for re-election.
BBC: Dorset County Council leader Angus Campbell to step down
The joint bid has been made by the National Trust and Dorset County Council.
Dorset County Council said such actions were illegal and the potholes had already been identified for repair.
Dorset County Council said there was "evidence of substantial landslide movement" on the path between Tout and Blacknor on Portland.
Dorset County Council said it was willing to assist Lulworth Estate with the repairs as it had done in previous years.
The Conservative Party has retained control of Dorset County Council, while the UK Independence Party (UKIP) has won its first ever seat.
Councillor Robert Gould, from Dorset County Council, said some people welcomed "the darker skies and the ability to see the night sky".
It was the second time Dorset County Council had seized Pitman's animals.
The leader of the Dorset County Council, Angus Campbell, said the construction of the road had already revealed prehistoric and Iron Age finds.
Dorset County Council planned to start work on the A338 Bournemouth Spur Road in September but was awaiting funding following the Spending Review.
An engineers' report on the options, and further geological studies, will be submitted to Dorset County Council's cabinet for a decision on 7 November.
BBC: Dorset landslip deaths: Beaminster Tunnel hood supported
Dorset County Council said a 6.5-mile stretch of the A338 Bournemouth Spur Road "has reached the end of its design life" and needs "significant" repairs.
Dorset County Council approached the Department for Transport for a special grant towards the cost of the repair work but this has been turned down.
Dorset County Council had originally planned to build a by-pass through the centre of the village along the disused railway trackbed in the early 1970s.
But Dorset County Council said testing and design work had overrun with the planned reopening date at the end of May put back by three to five weeks.
Dorset County Council said it was working with the National Trust, which manages the land, to reopen the path between Burton Freshwater and Cliff Road, where the landslip occurred.
Dorset County Council said engineers had dug five boreholes up to 25m (82ft) deep in the hill, investigated the foundations of the tunnel entrance walls and extracted samples for further investigation.
Apart from Yeovil, the Royal Bournemouth and Christchurch Hospitals NHS Foundation Trust, Northern Devon Healthcare NHS Trust, Dorset County Hospital NHS Foundation Trust have all pulled out of the consortium plans.
Mrs Knox, ward member for Beaminster on Dorset County Council, said she hoped the planning process would be as quick as possible and allow work to start around the new year.
BBC: Dorset landslip deaths: Beaminster Tunnel hood supported
Many of the executed men suffered multiple wounds, inflicted by a sharp-bladed weapon, to the skull, jaw and upper spine, all thought to relate to the process of decapitation, the Dorset County Council said.
Dorset County Council's head of community services Paul Leivers said the plans for community-run libraries were "very encouraging" and added that the council would ensure "buildings are in a reasonable condition" before handing them over.
Tescan closed down in 1981 and, after a short period of unemployment, Mr Ashdown got a job as a youth worker with Dorset County Council Youth Service, where he was responsible for initiatives to help the young unemployed.
The pipes, which will bring surplus water from the Dorset water treatment plant into the county, were given planning permission in East Dorset and North Dorset in March.
Portland stone, mined in the south western county of Dorset, was used by Sir Christopher Wren to rebuild St Paul's Cathedral between 1675 and 1710.
Some residents in Dorset are calling on the county council to turn street lights back on at night time claiming the current switch-off is "dangerous".
Civic chiefs across the county have launched a Dorset 2012 website offering advice on volunteering and business opportunities.
The other most affected areas are Shropshire (86 cases), Dorset (81) and Somerset (76, excluding the north of the county).
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