PLANS for a housing estate on a prime business site in Spennymoor have been thrown out in a bid to keep jobs in the town.

Councillors refused planning permission for the development because they felt it would be another knock to the town's economy, which has suffered a series of blows in recent years.

Manchester firm Golden Developments made two similar applications, to build 101 or 90 houses on land at Watson Court, Green Lane Industrial Estate, which were dealt with together.

Each proposal was for a mixture of terraced, semi-detached and detached houses with a landscaped earth mound separating them from nearby industrial units.

But Sedgefield Borough Council, Spennymoor Town Council, Durham County Council and regional development agency One NorthEast all objected to the plans on the same grounds.

They all felt the loss of a prime industrial site, especially when the town is suffering from the down-sizing of main employer Black and Decker, would be disastrous.

The site is the town's only prestigious estate and using it for housing would go against the Sedgefield Borough Local Plan.

All four organisations felt the land must be maintained for business use to attract new and alternative industries to Spennymoor to offer an increase in employment opportunities.

A report from One NorthEast said: "A holistic approach towards the development of this estate is required and this would be difficult with housing in such a strategic location at the entrance to the estate.

"Sadly, Spennymoor has suffered more than most with the demise of manufacturing in the region. It is imperative that the site is preserved to allow and promote future employment generating opportunities."

The applicant argued that about half of the buildings in Watson Court, mostly warehouses, are empty and have been for several years.

Golden Developments also felt the site would be ideal for residential use as jobs, shops and services are all accessible by foot, bicycle or public transport.

Spennymoor Town Council's objections included fears that industrial traffic would increase the risk of accidents, schools could struggle to offer enough places and there is no play area.

Councillors turned the plans down at a meeting on Friday.