Plans to convert Shepton Mallet's former Amulet Theatre into flats and a retail unit have been thrown out by Somerset Council — as a grassroots movement to revive the building as a community arts venue gathers pace.

The full application, submitted by the building's private owner via Collier Reading Architects, sought permission to redevelop the disused theatre into seven residential flats and one shop. But planning officers refused the bid, citing the "unjustified loss" of a community space and potential damage to the town's historic heart.

The Amulet, a landmark in Shepton since 1974, was originally a gift from the Showering family and operated as a thriving cultural hub for decades. But after it passed into private hands in 2011, public use dwindled. Now, with the developer's plans halted, a growing coalition of locals — including residents, artists, councillors and heritage groups — are pushing for the theatre's revival under community ownership.

Refusing the application, the council said the proposal failed to show that keeping the building for community use was unviable. They concluded that losing the space would cause "a significant level of harm to the sustainability of the town", adding that it would undermine policies meant to protect valued local assets.

The plans were also criticised for threatening the town's heritage. The proposed glass-fronted vestibule, intended as an entrance to the retail unit, was described as "visually dominant and incongruous" and likely to cause harm to nearby listed buildings, including the Grade II listed Market Cross and the Shepton Mallet Conservation Area.

The planning application had argued the conversion was necessary to offset costs of maintaining the large and underused building. The owner cited repeated failures of previous community-focused schemes and insisted the new flats would make better use of empty backstage and stage areas, with minimal changes to the building's exterior.

Campaigners under the banner "Let's Buy The Amulet" are now working to bring the building back into public hands. The group is consulting the community on future uses — from craft markets and cafés to cinema and theatre — and preparing a bid to the government's £150 million Community Ownership Fund.

If successful, residents would be able to buy shares and have a say in the theatre's future, backed by a formal community-run organisation. Key national and local partners, including the Theatres Trust, Plunkett Foundation, and Shepton Mallet Town Council, have pledged their support.

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The Amulet Theatre is one of the last of its kind in the UK, known for its Brutalist design and unique motorised ceiling. Its restoration would not only preserve a rare architectural gem but breathe new life into the town centre.

Locals can take part in the consultation at buytheamulet.org.uk or contact organiser Martin Berkeley on 07966 008778.