BUSINESS leaders fear the region will fall further behind the rest of the country if a beleaguered council masterplan ends up in the rubbish bin.

Durham County Council's ambitious multi-billion pound vision of County Durham as a booming economic powerhouse was left in tatters yesterday (Wednesday, February 18), after Planning Inspector Harold Stephens condemned its 20-year masterplan the County Durham Plan (CDP) as unrealistic, flawed, undeliverable and unsound.

Mr Stephens' interim findings, published three months after he concluded a six-week public inquiry, has left the county in limbo, with council chiefs concerned without no strategy they will struggle to attract new jobs and deliver future prosperity and others worried without limits the county will be left vulnerable to inappropriate development.

Business leaders have leapt to the council's defence, with leaders of Merchant Place Developments (MDP), the firm that persuaded Japanese transport giant Hitachi to build a new 730-job train factory in Newton Aycliffe, saying it was right to be ambitious.

"If you're going to attract new manufacturing to the region, you need to be able to accommodate it," said Adrian Goodall.

"This is a long-term plan and there's nothing wrong with being ambitious if it allows you to accommodate the demands and requirements of industry.

"If you find yourself in the converse position of not being able to accommodate the manufacturing industry, it will go elsewhere."

Phil Wilson, Labour MP for Sedgefield, added: "If we weren't ambitious, we wouldn't have got Hitachi.

"The council has a good track record of attracting major employers to the area and they have got to continue doing that."

Graham Robb, chairman of the Institute of Directors in the North-East, warned the dismissal of the CDP could open up a planning vacuum.

"Durham has huge potential for growth and jobs. The pace of economic growth in recent months vindicates the optimism of planners when they drafted the plan some years ago," Mr Robb said.

However, Mr Stephens' verdict met with a different response from campaigners who had fought to protect Durham City's Green Belt from 4,000 new houses and two new bypasses.

Kirsty Thomas, from the Friends of Durham Green Belt, said the Inspector had supported its arguments "100 per cent" and its views had been vindicated, in stark contrast to the "failure" of the council.

"Throughout our campaign we have made every effort to develop a discussion with the council and planners but at no point have they responded.

"We have opposed incursions on the Durham Green Belt, the building of two relief roads and the inadequacy of policy 32 on student accommodation because we care deeply for the city and its future.

"It is a credit to the objectors that they have presented such well informed and coherent arguments."

Julia Bowles, the former chairman of Sedgefield Village Residents' Forum, said: "The report is great. It really restores your confidence in the process.

"If the council had done a bottom-up consultation and really listened to what communities wanted instead of this pie in the sky idea, we could have had a wonderful plan by now."

Council chiefs are now considering what to do next and will meet Planning Inspectorate officials next month.

Councillor Neil Foster, the cabinet member for economic regeneration, accused Mr Stephens of "limiting the region's economic aspirations".

"Perhaps the greatest threat we now face is that of business having confidence in investing in Durham due to uncertainty around development and growth potential.

"Together these limitations alone have the capacity to our county very serious damage."