THE battle to build student flats on St Clement’s car park could return to the Town Hall if councillors challenge this week’s planning refusal.

Worried traders were jubilant on Wednesday night when city councillors voted five to four to turn down plans to build 141 student bedrooms on the council-owned site, that would have cut car parking spaces from 112 to 74.

But some Labour councilliors are seriously considering “calling in” that decision for review.

The council stands to make an estimated £5m if the development goes ahead.

Under council rules, if 12 councillors call for the decision to be reconsidered, it must be looked at again.

Labour’s Colin Cook, who had backed the proposal, said councillors would discuss with officers whether the application should be called in.

He said: “It may be that it will go to a call-in. There is a window of opportunity to call planning applications in, and councillors will be taking soundings from officers and each other.”

He added: “In the development plan in the core strategy, this site is designated for accommodation, so I think something will come to pass there.”

Mr Cook admitted that the failure of the plans could pose a financial problem for Oxford City Council, which would have netted £5m if it went ahead.

Even if it is turned down again by councillors, developer Watkins Jones Group could appeal the decision, seeking a fresh judgment by a Government planning inspector. Restaurateur Clinton Pugh, who has campaigned against the development, said the council was more worried about the financial hit than whether it was right for St Clement’s.

He said: “We are extremely pleased to get to this stage because it shows we were correct in what we have been saying all along, that it is not suitable for the community.

“I think the council should accept that. It does not meet the requirements of the area, and they need to start again and do it properly.”

Graham Jones, of traders group ROX, said: “It will be very sad if the plans are called in.

“The councillors who voted for the plans need to have a serious rethink.

“They need to look at the harm the plans would do against the area, both for businesses and residents, and to appreciate the benefit of the car park to the community.”

He added: “The site is in the core strategy for some sort of development, but they have got to scale everything down.”

More than 140 businesses objected to the £8m plans, saying the loss of car parking spaces and the location and size of a temporary alternative car park during building work would see traders go bust.

Local residents say the blocks are too big, even though earlier plans have been scaled down.