A NORTH Yorkshire brewery has become a victim of its own success.

And now Hambleton Ales is being allowed to build homes to generate the finance for a move to bigger premises.

Councillors yesterday decided the boost to the local economy outweighed other policy issues.

Residential development will now go ahead at The Brewery site in Holme-on-Swale, near Thirsk.

The firm's representative, Nick Stafford, told Hambleton District Council development control committee: "Approval for this application is vital to securing a prosperous future for my small business, which has grown from just a good idea into a successful venture with nine employees.

"But we have been so successful we must now move."

Planning officer Tim Wood said the decision was a balancing act.

"We think economic expansion takes priority over the fact the area is outside development limits," he said. "The firm needs to develop homes to finance a move and we think it is appropriate to allow this as an exception."

The committee heard the brewery has been on the site since the mid-Nineties after agricultural buildings were converted.

Mr Wood said the village had no services and the brewery workers lived in places such as Darlington, Ripon and Northallerton.

"This highlights the need to relocate to expand the business," he said. "The brewery is the only source of employment in the village."

Coun David Webster said: "The site is part of the village anyway. The brewery has grown and intends to move.

"I can do nothing but congratulate Mr Stafford on the way he has built the business up."

Coun David Smith was concerned the community had no services at all.

"Yet we are giving weight to the economic argument," he said.

Head of development control Maurice Cann said: "This is an exception to policy which we have not taken lightly."

Mr Stafford said: "Being allowed to build homes will enable us to relocate and restore tranquillity to neighbours."

He has also said the business must remain within sight of the Hambleton Hills for marketing reasons and so the new brewery must be within the locality.