PLANS for the regeneration of Stanley suffered a major blow on Monday when Deputy Prime Minister John Prescott pulled the plug on a multi-million pound housing development.

It marks an end to a six-year row between developers and residents over proposals to build 169 houses at the greenfield site of Station Fields in Shield Row.

Mr Prescott's office rejected the proposal, despite Derwentside District Council's approval of the scheme and a recommendation from a planning inquiry that it should go ahead.

The plans were refused on the grounds that noise from Tanfield Lea South Industrial Estate would ruin the quality of life for anyone living in the homes.

District council leader Alex Watson said it was a bad day for the town.

"I don't understand it at all," he said. "It is not good news for Stanley. I find the reasons for pulling it in extremely suspect.

"We spent two years talking to the developers to get the right plan to the table. We approved the application because we felt it was needed to regenerate the area."

The joint proposal, by developers Bowey Homes and Dunelm Castle Homes, would have seen 169 houses built between the C2C cycle route and the industrial estate. The plans were for 63 four-bedroom, 92 three-bedroom and 14 two-bedroom houses.

But Shield Row residents, who opposed the scheme, are celebrating.

Mary Finlaw, 79, of Pearson Street, said: "Thank God for that. I don't object to houses being built there, but the access road they proposed was dangerous. It was a black spot on what is a very busy route between Stanley and Newcastle."

* Eighteen houses are to be built on a vacant lot next to the Victory Club in West Road, Annfield Plain.

Grainger Homes will construct the terrace houses, along with 24 car parking spaces, after the district council's development control committee voted to approve the scheme.

Council leader Alex Watson said: "There has been a lot of pessimism in that area that nothing has been happening.

"This can only do the commercial centre of Annfield Plain some good."