CAMPAIGNERS have welcomed a businessman's decision to withdraw his appeal against planners' refusal of his application to develop a former racing stables near Dorchester.

Peter Bolton announced a scheme last year to build 28 flats and 28 industrial units at Whitcombe Manor Racing Stables.

The proposal was thrown out by West Dorset District Council after nearly 400 people signed petitions against the scheme, citing environmental and traffic concerns and increase strain on service.

But Mr Bolton, who bought the 952-acre Whitcombe estate in 1987 for £2 million, later appealed against the council's decision and a public inquiry was due to be held next July. However he now appears to have conceded defeat on his original plan by withdrawing the application to West Dorset.

Winterborne Farringdon parish councillor Alec Walters, of Whitcombe Manor, said while he was pleased the appeal had been withdrawn, local people were still worried over the long-term future of the site.

He said: "I welcome this move by Mr Bolton but there has been so much uncertainty, we need to know just what is happening. Hopefully this will be the end of this scheme for flats and industrial units although I doubt it.

"This area could never support anything like what was being proposed. There is no infrastructure here to support residential property.

"It's perfectly understandable Mr Bolton wants to develop the site because he owns a valuable piece of real estate. I'm not saying it should be left empty like it is, something like an equestrian centre would be ideal."

The plan, in a designated Area of Outstanding Natural Beauty, came after the stables opened in 1987.

The site was thrown into the limelight in 1993 when Cheltenham Gold Cup winner Cool Ground was trained there.

The stables closed down in 1999 and it was early last year that Mr Bolton announced his plan to create a mixture of homes and small commercial units similar to Dorchester's Poundbury estate.

Andrew Martin, West Dorset planning officer dealing with the scheme, said: "The original application is now effectively dead. We have held positive discussions with the applicant about different development options for the site but until a fresh application comes in, there is nothing we can say."

Mr Bolton was unavailable for comment.