A VILLAGE pub that is running at a loss looks likely to be saved from plans to close it and convert it into a house.

Gillian Russell had applied for permission to change the use of the White Horse Inn, in Beadlam, near Helmsley, which she said has incurred substantial trading losses since she moved in more than two-and-a-half years ago.

But the plan sparked objection from two local councils which said it would be a great loss to the community having already lost their village post office in the past six months.

Beadlam and nearby Nawton parish councils wrote letters of concern about the proposal to the planning department at Ryedale District Council.

Olwen Hewlett, of Nawton, said the pub was considered an important amenity.

Ms Russell said: "In the early part of 2001, foot-and-mouth took hold across the county and my aspirations of increasing my trade did not materialise.

"I injected private funds to cover my shortfall in income, with the result that I incurred a £30,000 trading loss over the first year. The year 2002 did not show any significant signs of recovery and I incurred a further trading loss for that year of £60,000."

The planning committee has been recommended to refuse the proposals at a meeting on Tuesday. Planning officer David Butt said that Ms Russell had provided insufficient material to prove that the facility was not financially viable.