THE headteacher of one of the country's top independent school says he is "dismayed and bewildered" that £50m relocation plans have been thrown out.

David Dunn said the decision to stop Yarm School moving to a 120-acre site at Town End Farm, off the A67, on the outskirts of the town near Stockton, was "short-sighted".

He said the school would now be looking at all the options open, including appealing against the decision - and moving the school out of the area.

The Northern Echo reported yesterday how the scheme sparked anger among nearby residents, who said it would cause traffic congestion and impact on the environment.

And despite being recommended for approval by planning officers at Stockton Borough Council, the scheme was refused by councillors on the grounds that it failed to comply with regional and national policies.

Mr Dunn said: "I am dismayed and bewildered by this short-sighted outcome. Yarm School has just been ranked in the top 50 co-educational schools in England by The Times, is a major employer with some 200 staff and plays a crucial role in helping key workers relocate to the Tees Valley.

"My telephone was red hot on Tuesday night with major industrialists ringing to try to understand which town could turn down an exciting project with a £150m investment leading to the creation of a world-class school.

"The project had the full backing and recommendation of the planning officers and major agencies, the local labour MP and there were no statutory objections."

He added: "I have to consult with the board of governors. At the moment I don't know what we will do. Moving out of the area has been talked about but so have a number of other things.

"We don't really want to have to appeal because it will use council taxpayers' money and we will have to pay as well. We would prefer for this to be sorted out in another way."

The North-East Chamber of Commerce yesterday gave its backing to Yarm School and it expressed concerns that a decision could impact on the wider Tees Valley economy.

James Ramsbotham, NECC chief executive, said: "I am disappointed by this short-sighted decision. Yarm School has a fantastic reputation for the quality of its educational provision.

"This reputation is a major driver for senior executives attracted to work at leading multi-national companies based in the Tees Valley."