District councillor Virginia Bucknor described the plan as a "wish-list" which had not been costed.
BBC: Wisbech 2020 Vision plans to regenerate the town
Jonathan Gray, district councillor for Kimbolton, described the decision as "a good day for localism and our community".
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Alastair Adams, Wychavon district councillor for Honeybourne and Pebworth, said Tuesday's fire went "from a bonfire to a huge raging inferno".
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