PLANS for an energy-saving power plant to help lower as many as 10,000 household bills in Southampton's most cash-strapped areas were dealt a blow after politicians vetoed the idea.

The new power and heating plant on the outskirts of the city could cut heating bills by as much as 15 per cent in nearby Nursling and Millbrook.

But decision-makers at Test Valley Borough Council, where the proposed site sits, last night voted overwhelmingly to turn the plans away after a three-and-a-half-hour debate.

Every member of the council's planning committee voted against the proposal after deciding it did not fall into line with its own local plan - an 11-year guide laying out planning restrictions.

The result will be a massive blow to politicians in Southampton, who had written to Test Valley politicians asking for their support. Instead, the issue will now go before a public inquiry on November 14, where city bosses will be hoping an independent inspector gives them the all-clear to build the multi-million-pound plant.

It had earlier looked likely that the plans, which would see the huge power plant built at The Crescent Industrial Estate off the M27, would be pushed through.

The development would mean far cheaper heating and gas bills initially for 3,400 homes and businesses in outer Southampton but that could increase to as many as 10,000. But after hearing several objections Councillor Anne Burrows tabled a motion to refuse permission for the move, and was backed by every hand in the room. She said: "We live in a beautiful area which has much historic value. A development like this will simply create a visual intrusion and cause environmental damage to our countryside."

Tony Grimshaw, of Nursling and Rownhams Parish Council, was delighted with the outcome.