PLANS to build houses, staff accommodation and a hotel next to Durham's main hospital have run into opposition.

Durham City councillors have deferred a decision on the outline scheme until they have visited the site.

Planning officers recommended that the proposals for land next to the University Hospital - formerly known as Dryburn Hospital - should be approved.

But the Liberal Democrat-controlled council's development control committee heard that residents and the City of Durham Trust are against the plans.

The £97m high-tech hospital replaced the ageing Dryburn Hospital and freed up development land on the site, between Dryburn Road and Southfield Way, for the consortium which built it under the Government's Private Finance Initiative.

Four years ago, Tesco abandoned plans to build a supermarket after running into opposition and being refused permission by the council.

Vico Properties (Northern) Ltd and Balfour Beatty plan two accommodation blocks for doctors, nurses and students - each four-storeys - a creche, hotel and restaurant bar on the north side of the site.

At the southern end, Barratt Newcastle and Balfour Beatty are proposing 103 flats and houses, ranging from one to five bedrooms. Part of the site a temporary car park.

Councillors heard that health chiefs were opposed to a restaurant-bar on the doorstep of a hospital that treats patients with drink-related illnesses but the applicants were willing to accept conditions making it a food-led operation linked to the hotel.

Durham County Council, the highways authority, whose headquarters is opposite, believed roads could handle the traffic the scheme would generate.

But residents and the City of Durham Trust fear it will increase congestion, take away badly-need parking spaces and eat up land that could be used by the hospital, although officials say they do not need it.

Trust chairman Roger Cornwell said the nearby Sniperley roundabout would fail its capacity by 2011 and there was concern that the development, together with plans for a park and ride scheme and New College's redevelopment could create a traffic logjam.

He said: "We felt that there should be a site visit and we are very pleased the council has agreed to it."

Local councillor Robert Wynn said: "The traffic is bad already. If you get more houses, a hotel and a hostel you would get even more vehicles."