Prescott rejects £100m racecourse plan

John Prescott has spurned the opportunity to create hundreds of jobs and build a major leisure facility by rejecting plans for a £100 million racecourse serving the City and east London.

The Deputy Prime Minister overruled an inquiry recommendation that the racecourse should go ahead because he claimed the development was " inappropriate" for the green belt site near Ilford.

Bizarrely, Mr Prescott said that, while the proposals "constitute inappropriate development and will harm the openness of the green belt", the site, if developed as proposed, "would broadly continue to serve all relevant green belt purposes and objectives". The decision has outraged supporters of the 345-acre development, who say it would have meant a huge jobs boost. Oliver Iny, chief executive of developer, the Wiggins Group, said: "I'm speechless. It would have been such a great opportunity and done so much for racing and architecture."

However, Mr Prescott's ruling-will be seen by others as a reaffirmation of green belt protection, following his announcement earlier this month about the need for 200,000 extra homes in the South-East.

The Wiggins Group wanted to build an all-weather racecourse, grandstand, stables, health and fitness centre, enclosures and car parks at Fairlop Waters, which is owned by Redbridge council.

The council rejected the plans but, after a public inquiry last year, an inspector recommended that permission be given.

However, Mr Prescott was not convinced by the inspector's conclusion that the development was "a necessary contribution to horseracing" and was concerned that the scheme "would cause the currently mainly rural character and appearance of the area to become considerably more urbanised" in spite of the design's high quality.

He said there would be an adverse impact on the landscape, ecological disturbance, a degree of increased road congestion and loss of residential amenity.