A BUSINESS park which could create up to 1,500 jobs in Lower Darwen is set to be thrown out, because part of the site would be used for housing.

Developer Charles Topham and Son say they need the estimated £3million they would make from using part of the the old Lower Darwen Paper Mill site for houses to pay for a new business park.

But the land, next to the M65, at the site has been earmarked for industrial uses in Blackburn with Darwen's Local Plan.

Councillors originally deferred a decision on the project from their August meeting so further discussions could take place with the developer.

The councillors sitting on the planning and highways committee said they were concerned that the scheme was a ploy by the developer to build houses and then not bother with the industrial units, despite assurances from the firm that this was not the case.

They even offered to sign a legally-binding agreement which would mean none of the houses were lived in until work began on building and marketing the business park, but planning officers have still recommended it should be refused.

The plans put forward to the committee involve 80 houses being built to the east of the site, with the rest being used for industrial and office uses.

A total of 160,000 sq ft of high quality office development would be created, and it is expected that this would lead to around 1,500 jobs coming into the borough on the site of the old paper mill, which itself was once one of Blackburn and Darwen's major employers.

The report to committee states that the applicant believes the project is only viable with the housing element. An element for leisure use -- such as a hotel or restaurant -- has already been scrubbed out at the request of planning officers, again because the site's designated use is industrial only.

The report also concludes that regeneration grants from the Government and Europe would not help fund the project, because they are only dished out in stages and would not give the developer the financial flexibility to complete the project.

It adds that if Charles Topham don't develop the site, eventually a developer will come along who can afford to wait for grant assistance.

It recommends the plan should be refused on the grounds that it is contrary to the Local Plan.

The report states: "It is considered that the entering of an agreement should give the council the necessary level of confidence to assure that the housing development will not proceed in isolation.

"However, it is considered that this confidence should not outweigh the significant policy objections to the proposals."