PLANS to build a prison have been pulled at the eleventh hour.

The application for a Category B prison to house 1,500 inmates on the site of the former Runwell mental hospital was due to be debated by planning members at Chelmsford Borough Council last night.

But at lunchtime on Monday, the Ministry of Justice announced it had withdrawn its application.

The matter had been recommended for refusal by officers because of an unresolved housing issue.

Dave Callum, spokesman for the No Prison in Runwell action group, said: "There were supposed to be 624 homes built on the Runwell Hospital site, with a doctors' surgery, school and shops.

"If the prison goes on that site, the housing development will have to be put elsewhere."

The MoJ is believed to have identified an alternative site but has yet to secure it, meaning the council had reservations about granting planning permission for the prison.

Mr Callum added: "We are very pleased that the MoJ has withdrawn the application but the MoJ has said it will resubmit the application once the matter is resolved."

The group has vowed to continue its fight once the new application is submitted.

"We are amazed and dismayed that the council found just one reason for refusal," said Mr Callum.

"We have several reasons based on material planning grounds that they could have used as a basis for refusal."

A spokesman for the Ministry of Justice said: "We have withdrawn our existing planning application in order to resubmit it once the outstanding issue is resolved.

"This decision was taken after careful consideration of a recommendation for refusal of planning consent given by officers at Chelmsford Borough Council.

"Their recommendation was made on the sole ground that despite the hard work of all parties involved, the loss of the site for housing has not been satisfactorily mitigated against.

"We aim to resolve this issue as soon as possible."

He added: "We are strongly committed to the proposal at Runwell and the major benefits it would bring to the local economy."

Leader of Basildon District Council Tony Ball said: "Any backwards step for the prison is welcomed by the people of Wickford.

"It is quite clear the majority view is against the prison and for the housing, if we had the choice."

Although the withdrawal is only expected to be a temporary stumbling block, Mr Ball is hopeful it could lead to a permanent reprieve.

"Let's hope the prison plan doesn't see the light of day again."