VILLAGE hall campaigners in Hutton Rudby have suffered a setback in their plans to build a modern £800,000 hall - but they have vowed to press on.

Hambleton councillors yesterday rejected a planning application by ten votes to nine after officers voiced worries about the size, cost and potential use of the proposed new hall.

They thought the planned building was too big and out of keeping with the surrounding conservation area.

But a spokesman for the hall fundraising committee said planned events would continue along with hopes for ultimate success.

The village hall committee's plan, submitted through Rudby Parish Council, was to demolish the present hall, which has major structural problems. and build another with 866 sq m of floor space to serve an estimated 20,000 visits per year from 13 different groups.

Amateur drama would be one of the main activities and a major source of revenue. Ground floor accommodation would include a main hall with badminton court, foyer, function room, kitchen and stage. The first floor would feature a meeting room and a gallery space.

Hambleton council leisure officers questioned whether funding could be secured. Maximum grants of about £300,000 could be given through the national lottery, but they wondered where the remainder would come from.

They asked if the village could prove a need for such a hall and sustain it, and understood there were only three user groups.

Planning officers visited Hutton Rudby on Monday to meet village hall representatives and look at the hall.

At the committee meeting, Coun Ian Grieve's proposal that the development be approved was rejected by just one vote.

He said: ''It could be a community building to be proud of and is the same shape as the Methodist church in the village. The old building has several floor heights, making access difficult, which is why some people stopped using it. The village is looking for a modern building which addresses what the community needs and is the result of extensive consultation.

"Doing nothing is not an option. Do you have a hall which meets the needs of the village or go for something significantly smaller which might look better but certainly would not fulfill village needs?

"This would sit reasonably well on the edge of the conservation area. It would be a public building of some presence.''

The committee also refused conservation area consent for demolition of the existing hall in the absence of any immediate replacement.

Despite the setback, campaigners are determined to see the project through with new plans.

Mr Richard Hodgson, in charge of fundraising, said numerous events had been held this year, including dances, concerts, hair dressing demonstrations and open garden shows. A recent auction of promises raised more than £6,000.

"Loads of people have helped us and we are going to keep on raising money for a new hall.

"A concert is taking place tonight and another is planned for next Saturday night," he said. Various groups had helped raise funds, including the brownies, guides and drama society.