An old wooden building once used as a tyre depot may scupper Oxford University's plans for a £45m business school.

English Heritage has announced it is not satisfied that the old LMS station can be safely dismantled and moved from the giant site next to Oxford railway station.

Now the much-vaunted "new gateway to Oxford" - and the whole transport strategy - could be threatened.

The University unveiled its revised plans for the business school today, including two new public squares.

But English Heritage's historic buildings inspector Dr Diane Kay told Oxford City Council in a letter: "The proposal to demolish the Grade II listed building cannot be justified at this stage, if at all, on the grounds of the business school development."

She said the University's planning application lacked detail and warned: "We consider that the case for demolition has not been made."

The University, backed by the county council, wants to shift the former London Midlands and Scottish station to a railway heritage centre at Quainton, Buckinghamshire, but needs English Heritage's consent.

The University's Dr Paul Flather said: "We are now in intensive discussions. We are confident of securing their agreement. If that is not possible we will have to think again."

The revised scheme for the business school includes a 300-seat lecture theatre and four other horseshoe-shaped lecture theatres. But Maureen Christian, chairman of the city council's planning committee, said: "My immediate reaction is one of disappointment. It is not the exciting, modern building that I was expecting.

"It appears to be one of those buildings that looks beautiful from the inside but not from the outside. Yet this is one chance to make a wonderful entrance to Oxford."

She called for renewed efforts to find an alternative site for the LMS station in Oxford, adding: "I do not believe that this should be beyond the wit of the University and the city and county councils."

The business school for up to 360 students is to be named after the Arab millionaire Wafic Said, who contributed £20m. An outline planning application will go before the city council on July 15, with the University hoping for completion by the autumn of 2000.

Converted for the new archive on 30 June 2000. Some images and formatting may have been lost in the conversion.