DEPUTY Prime Minister John Prescott has rejected a controversial proposal to build nearly 300 homes on a greenfield site in the New Forest.

Mr Prescott, pictured, has delighted countryside campaigners by throwing out an application by Stanborough Developments to build a new estate on former farmland near the A326 at Totton.

Civic chiefs today confirmed that the decision would not jeopardise plans for a £500,000 arts centre at neighbouring Hanger Farm.

Earlier this year bosses behind the housing plan drew up proposals to build a new link road serving the estate and the arts centre.

Worried Totton councillors warned that any rejection of the homes schemes could also defeat moves to convert Hanger Farm.

Today town clerk Derek Biggs said the farm would now be equipped with a private access road.

Totton Town Council's plan to build the arts centre has been submitted to New Forest District Council, which is likely to decide within the next few weeks.

District councillors approved the housing scheme in July last year, despite fears that the layout and design could encourage crime.

The plan to build 280 homes on the site also sparked fears that the scheme would have a major impact on the local infrastructure.

Mr Prescott has overturned the council's decision and rejected the scheme after studying a report from planning inspector Martin Andrews, who chaired a goverment inquiry into the plan.

The report includes comments made at the hearing by representatives from Hounsdown School, Totton.

It says: "The school is already oversubscribed. The Hanger Farm development would introduce further pressure for places on Hounsdown and other local schools.

"A second main concern is that the high density of the housing on the site, with small gardens and no provision for a communal play/recreation area would leave little recreation space for children.

"In addition the layout - with vehicle courtyards not sufficiently overlooked - could lead to children becoming the victims or perpetrators of crime."

A covering letter says Mr Prescott rejected the scheme because it failed to include enough social housing.

The letter claims the application would not create a mixed community and thus contravened both the local plan and national policy on affordable housing.