Hart District Council’s planning committee has rejected an application by house builder Taylor Woodrow for the former Queen Elizabeth II barracks in Church Crookham, near Fleet, Hampshire.

The council rejected the scheme even though it conforms to the local plan and was recommended for approval by officers.

Taylor Woodrow purchased the major brownfield site near Fleet in North Hampshire for residential development in 2002 after the site was earmarked by the council for residential development. At the time of the acquisition was the largest single land purchase ever undertaken by the company. The firm had hoped to build on the land with homes released for sale in late 2003 or early 2004.

A brief company statement released after the meeting said: "As our planning application was in line with Hart District Council’s local plan and the result of close co-operation between Taylor Woodrow and the council, we are disappointed by the decision and its impact on the local area."

The planning rejection was made on the grounds of its impact on a nearby wildlife Special Protection Area. However, the wildlife issue was accepted in the original land allocation, although Taylor Woodrow have increased the density since then.

Some 700 people turned out to the planning meeting, most of who objected to the scheme.

Taylor Woodrow are considering an appeal, which could cost the village taxpayers an estimated £1 million if the firm wins.

But Conservative councillor Sean Holden, who spoke passionately against the applications at the planning meeting, thinks it is a price worth paying. "I believe we should oppose this every inch of the way," he said.

"The funds are there and I don’t believe people can think of any better way of spending their money than on the fight to protect their quality of life."

Keith Lamey, director of planning at Taylor Woodrow said: "We've thought very carefully about this planning application, and spent time addressing the concerns of English Nature."

"Unfortunately whenever we solved one problem the council came up with another – they're just against the development."