THE future of Cotswold Country Park and Beach hangs in the balance after holiday homes developer Watermark confirmed it has ended its lease.

The Cotswold Water Park Society must now stump up a £300,000 break payment to Watermark by February. If it fails, Watermark will be able to stay at the Country Park for five years rent free because of a controversial clause in the lease.

The Standard revealed last week that leisure operators Watermark terminated their lease with CWPS. The two parties had a crisis meeting on Tuesday this week.

Watermark owner Max Thomas has not paid rent to CWPS since July, although the company has still been taking money from gate receipts, car parking charges and landfill.

At Tuesday's meeting, Mr Thomas confirmed he had exercised the break clause and wanted out from the Country Park.

Mr Thomas had hoped to re-negotiate a better deal with the CWPS to run Cotswolds Country Park and Lake with a lower annual rent than the £70,000 the company currently pays.

Tasha Flaherty, joint acting chief executive of the CWPS, said further negotiations with Watermark would be taking place over the next few weeks to see if both parties forward could find a way forward.

Water Park councillor for Cotswold District Council Esmond Jenkins slammed the lease, which was controversially signed over to Watermark in 2007.

He said it should be Watermark paying the £300,000 to break the lease.

"It seems ridiculous and complete nonsense," he said. "The previous, highly dubious deal, done in secret behind closed doors, has mired local politics in sleaze and scandal."

The lease deal also allowed Watermark to dump soil and other aggregates spoilage in the lake. Cllr Jenkins said it was unacceptable that was continuing while the lease disagreement continued.

"They should not be getting away with this, it is scandalous," he said.

Mr Thomas was not available for comment following Tuesday's meeting.

Last week he told the Standard the rent was too high and "not representative of its worth".

"The lease gave me the impression that we had a complete tenure over that whole area but that has not come to fruition," he said.