HUNDREDS of thousands of pound earmarked for a nursery in Newton Aycliffe has been lost because planners could find nowhere to put it.
John Newbould, owner of the House of Eden Nursery in Rushyford, has criticised planners for their lack of support.
Mr Newbould secured £450,000 through the Government's Neighbourhood Nursery Initiative to build a 106-place nursery in Newton Aycliffe.
A previous application was withdrawn because health and safety officers said it was too close to a hazardous chemicals plant.
Inquiries with Sedgefield Borough Council planning officers revealed that any application on the town's industrial estate would have no chance of gaining approval.
In a final throw of the dice, Mr Newbould made an application for a nursery at Horndale Avenue.
But that was thrown out by councillors on Friday because the site is part of Greenfield Butterfly Meadow.
After the meeting, Mr Newbould said planners had told him they could not identify a single site which would be suitable for a nursery in a ward described as one of the most deprived in the country.
He said: "They scoured their maps and there was no land suitable in the West Ward - their only suggestion was for me to buy a residential property and convert it.
"I'm now left in a situation where I've spent in excess of £10,000 trying to get planning permission for a nursery, but I've been thwarted at each and every turn. I do realise that democracy works in a funny way, but I've got £450,000 worth of funding that is now going to go to another region.
"Another town in this country is going to get a brilliant facility and Newton Aycliffe is going to miss out."
Mr Newbould said the funding was dependent on the nursery being open by next March and said: "I've run out of time. I've been trying since November last year and this was the last throw of the dice."
At the planning meeting on Friday, a request for a site visit by Councillor Bill Blenkinsopp was narrowly rejected. Councillors voted to refuse the application because it was against planning policy.
Coun Alan Gray said: "This is quite clearly an area that we need to preserve. I believe it's a most inappropriate place for a nursery."
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