£500m plan to build a 'wee Inverness' is given the green light

Work to build a major new town on the outskirts of Inverness could start next year after the £500 million project received outline planning permission yesterday.

Inverness Estates, a consortium of four businessmen, has earmarked a 195-acre site east of the city for the development featuring 2,550 homes - including 600 affordable homes - shops, hotels, schools, churches, an industrial park and sports facilities. The developers claim it will create more than 2,000 jobs.

Highland Council granted approval after rejecting an attempt to have the special meeting deferred. The permission is subject to 62 conditions and a legal agreement committing the developer to make contributions to the costs of infrastructure.

The developers say the project, which will be phased over 20 years, could be an "invaluable economic buffer" for the area as recession and government cuts bite.

A spokesman for the consortium - property developer Mark Shaw, housebuilder David Sutherland, and businessmen Peter Mackintosh and David Cameron - said: "This a good day for the Highlands and for Scotland and demonstrates that despite the very challenging economic times we face there are still reasons to be optimistic about the future."

The new community will have a population of about 7,000 and be part of one of Scotland's population growth hotspots.

The site is seen as one of the most important areas for development within the A96 corridor which will include a university campus and other new communities. The Stratton plans envisage a new town centre being created for the suburbs of Culloden, Smithton and Balloch.

Already there are plans for a new town at nearby Tornagrain with 4,500 houses for up to 10,000 people and a 3,000-strong resort at Whiteness on the site of the former McDermott oil platform construction site near Ardersier.

The spokesman said the latest development will create an estimated 1,200 construction jobs and around 1,000 permanent jobs, and is the largest single building project in Scotland.

Campaigners, including the Green Party, wanted the meeting called off, claiming it was a significant departure from and contrary to the adopted Inverness Local Plan.

Catriona Johnson, of Westhill Community Council, said discussing the plan now made a mockery of the consultation process.She said the development amounted to "urban sprawl" and would further harm the reputation of Inverness.

Councillors noted the application was a departure from the Development Plan, but agreed there were material considerations to justify granting permission, not least the economic benefits to the city.

It was also claimed the scale of the development was not justified and was out of keeping with the character of Inverness, while the new town centre would harm existing businesses in the city.

Councillor John Holden said Inverness centre could become a "ghost town", with businesses moving out.