Landowners and planners locked horns this week at a public inquiry into a scheme that could leave local businesses homeless.

James Duke and Sons is appealing against the decision by Winchester council not to allow the firm to bulldoze the Abbey Mill site in Bishop's Waltham and create a mixed housing and business development.

The plan would mean the heavy goods and plant hire businesses which currently lease units at the industrial estate would be forced to move out.

Planners say their work would not be compatible alongside housing and so rejected the application because it would result in the demise of local companies.

But on Tuesday, the opening day of the inquiry, barrister Craig Howell Williams, acting on behalf of Duke and Sons, said the plans did make provision for businesses.

He said: "This scheme will provide a 27% increase in floor space for businesses. That will lead to a consequential increase of jobs. There will also be improved access to the site and a better car park."

But Trevor Ward the barrister representing Winchester council said: "However the appellant wants to dress up the figures, land will be lost. Service sector employment will be catered for there at the expense of the type of employment that is there at the moment."

The council then proceeded to open their case, calling experts to give evidence on the environmental concerns arising from the application.

Scientific officer for environmental health Philip Tidridge claimed the site was designated 'contaminated' due to the pollution over the years from a number of heavy goods companies including using the site for underground fuel storage.

He explained how a full investigation would need to be carried out on the site to ensure it posed no public health risk should the land be converted to housing use.

He said: "There is no risk at the moment for users of the site because of the way they use the land. If it were to be converted to housing the risk increases because the land will be used differently for example as gardens, to grow crops or build pathways.

"It is the vulnerable groups like children, the ill and the elderly that will also be using the land in a way that it is not used at the moment as a very hard landscape."

The inquiry has now been adjourned and will resume in the new year at a date yet to be fixed.