IT could have brought 2,500 new jobs to York - but people power has sunk multi-million plans to bulldoze green belt land and build a new business park.

Residents and council chiefs were overjoyed today after John Prescott threw out a scheme to build new offices at Monks Cross.

Mr Prescott has refused the Monks Cross Partnership's plan to massively extend its huge business park in Huntington.

If approved, the partnership - led by property development company The Helmsley Group - would have added an extra 26 acres to its "premier employment" site.

Mr Prescott gave the decision following a planning inquiry, held in York in September. He has refused an outline planning application after ruling that any development would harm the green belt, which is where the land was situated.

Huntington residents said they were "delighted" with the decision, which they said finally began to stem the "tide of overdevelopment" in the area.

City of York Council leader, and economic development chief, Steve Galloway said the application to extend the business park had been "premature".

Today, John Reeves, chairman of the Helmsley Group, said it was too early to say what would happen but it was likely the partnership would try again in the future under local development framework rules.

"Obviously we are disappointed," he said. "It is too early to make that decision (whether to appeal). We believe it has been refused on the grounds of prematurity.

"We will go for it under the local development framework. It could take another two to three years."

The decision was contained in a 40-page document, in which the planning inspector, Mary Travers, concluded that the proposal would conflict with the need to focus new office development in town and city centres, and would be an "inappropriate development" in the green belt.

Clive Woolley, chairman of Huntington Parish Council, said: "We are delighted this decision has gone our way. It is the first one we have won of this nature.

"This application did not meet the criteria to build on the green belt. We realise there will be pressure on that land and we need to keep our awareness up. This decision has given us a lot of encouragement."

Coun Galloway said: "These proposals were brought forward prematurely and there are other sites that should be brought forward first.

"There is the possibility that something, in the long- term, may go on that land but the potential developers jumped the gun and put everyone into a lot of expense.

"There are still plenty of exciting opportunities ahead, with Monks Cross a development to be considered in the medium term."

Updated: 09:52 Monday, January 09, 2006