HUNDREDS of new jobs and millions of pounds could be lost after planning inspectors threw out two appeals to build a huge industrial complex in Hampshire.

The decision not to allow business leaders to develop a “thriving complex of businesses” has been described as “a blow to the prosperity of Southampton”.

But the news has been “applauded” by politicians at Test Valley Borough Council.

Barker-Mill Estates had wanted to build two industrial zones proposed for the 78-acre site next to the Ordnance Survey headquarters at Rownhams.

But in 2014 their bid was blocked by politicians at Test Valley Borough Council who wanted to turn the site into a space for ‘science park’-style businesses and for large company headquarters rather than the proposed 31,700sq m of distribution and storage.

Landowner Barker Mill Estate’s two bids were a key plank of eight planning applications to transform the site with new homes and another 47,000sq m of business space.

They appealed but their decision was also rejected by the planning inspector yesterday.

Only a scheme to restore Yew Tree Farm for office business space was given approval.

Tim Jobling, Trustee for BME said: “The decision is a blow to the prosperity of Southampton and the economic development of the Solent region as a whole.”

He added that the community would “miss out on a number of economic benefits” that the schemes would have delivered.

It was expected 630 jobs would have been created through the schemes, brought more than a £1m in business rates and “well beyond” £20m in further economic growth.

Previously, Test Valley Borough Council granted permission for 20,583sq m of business floor space and to create 23 homes on the Bargain Farm site.

Further plans for two other 10,848sq m and 12,941sq m of light industrial use on the site and a restaurant in Adanac Triangle have already been passed.

Previously, Hampshire Chamber of Commerce chief executive Stewart Dunn had already said that the expansion of the city’s docks so they could accommodate the world’s largest container ships fulfils the need for more distribution in the city.

He branded Test Valley Borough Council’s decision as a “serious setback” to the south Hampshire economy.

But Test Valley Borough Councillor Ian Richards, deputy chairman of the southern area planning committee, said: “I’m aware that the councillors will welcome the decision, it has vindicated our decision at planning and that of Test Valley Borough Council officers.

“I think it’s exaggerated that because we made a decision here that it’s going to affect the prosperity of the whole region. The design is to have a science park there.”

Mr Jobling added: “We are very disappointed that the Planning Inspector has ruled against our plans to progress part of such an economically beneficial development for the area. Our plans for Adanac Park are intended to respond to the demand of the fast developing business market, address the shortage of sites for logistics businesses and meet the local need for employment opportunities.”

He said that BME are reviewing their next steps but continued to in their efforts “to make Adanac Park a reality”.