AN ENGINEERING firm has been forced to put major expansion plans on hold after planning chiefs rejected an application to develop an unused part of its site.

Management at Thrislington Engineering, Newton Aycliffe, County Durham, said the decision to deny the Christian Life Centre permission for a community building had forced it to abandon its £1m development and the recruitment of 20 staff.

Managing director Peter Beecroft has laid the blame at the door of Sedgefield Borough Council's planning committee, and is angry at the treatment his firm has received.

"This firm has been part of this town's industry for almost 50 years," he said.

"We agreed a sale and we're led to believe there wouldn't be any planning problems, until a month before the development control committee met.

"I couldn't believe it when the application was rejected. It has forced us to re-evaluate our whole budget for the next 12 months."

But the council's director of planning, John Litherland, said the council was committed to developing the industrial estate, and the application by the church had been a difficult one to assess.

He said: "There are 11,000 people employed on the Aycliffe Industrial Estate, and we recently moved our economic development unit to the site, so we are committed to its future.

"The objections to the setting up of a community building were from businesses on the estate, as well as the borough. It was felt inappropriate, and it could dissuade other firms from moving there."

Mr Beecroft said the site had been for sale for three years before the church moved in.

He said: "We agreed a deal for £800,000, and we planned to use the money to invest in our site.

"What is astounding is that when we told the council that their decision had prevented our expansion, it informed us that the church could appeal."

But by the time Thrislington told the church, it had found alternative premises.

"It seems amazing that inward investment is strongly encouraged in Aycliffe with a host of grants for businesses moving in," added Mr Beecroft.

"But when a local firm like ours tries to expand we just meet a host of obstacles."

Mr Beecroft said the site is now on the market for half its original value.