PLANS for more than 130 homes in Padiham would not help regeneration efforts for the mill town, an inspector has ruled.

Rejecting the proposals by Muller Renaissance for the former Riley’s factory, in Station Road, Wenda Fabian said more consideration should have been given to providing starter units for businesses.

The inspector, who heard evidence during a five-day public inquiry at Burnley Town Hall, was also worried that not enough open land had been left for families choosing to buy two-bedroom apartments or three-bedroom homes there.

Lawyers representing the developer had argued that a feasability study had been carried out and the prospect of a mixed homes and industrial scheme was not financially viable.

Muller had bought the Riley’s land in 2006 for £2.6million before demolishing the old factory shed. Their plans also included a sheltered housing scheme.

But council officials said they would have been happier with a project which included at least a quarter of the site devoted to light industry or commerce.

Mrs Fabian said: “On balance I have found that the financial assessment provided by the council demonstrates that a residential development with mixed use for small industrial units on the appeal site would be viable.

“A fully residential development would not meet the continuing need for small-scale employment provision to meet regeneration objectives in the area.”

The proposal also lacked ‘private outdoor space’, she added, for either the planned family or senior citizen’s homes.

The inspector also believed that the homes would fail to fit in with the general outlook of Padiham or provide any worthwhile improvements.

An application by Muller for costs against Burnley Council, for ‘unreasonable behaviour’ was also dismissed by the inspector. Councillors refused the original bid in July 2009.