Plans for a £16m leisure village in Oxford have been thrown out by the Government.

A multi-screen cinema, bingo hall, bowling alley, casino and restaurants had been proposed for an eight-acre site in Oxpens Road, next to the ice rink.

The decision to scrap the plan has delighted protesters, who have battled for three years to stop the controversial project.

One of the leading campaigners, Green city councillor Mike Woodin, said: "This is a real victory for local residents."

The plan, put forward by Stockport company Pentith, was considered at a public inquiry last year.

Campaigners insisted the village would be an eyesore and opposed what they called its "shed-like" appearance.

Even the inspector who conducted the inquiry described the scheme as out of character with the surrounding area. Now Environment Secretary John Prescott has backed that view.

However, some - if not all - elements of the scheme could still be built if a more suitable site can be found elsewhere.

Mr Prescott criticised the visual impact and design of the scheme and ruled that the site, near the historically important architectural centre of the city, deserved more sensitive treatment. He said access for pedestrians and public transport was inadequate and the village would be attractive only to car drivers, possibly adding to traffic chaos. The plans were originally put to the city council in 1995. In March 1996 the planning committee recommended the full council reject them.

But the council referred the plans back to the planning committee, which asked for further changes, replacing a nightclub with a casino and adding shops.

The Department of the Environment later took the application out of the hands of the council and said it would make the decision itself.

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