The 24 houses, 24 flats, 16 new business premises and an underground car park, would be too big and have a bad impact on the town's Conservation Area, according to inspector Roger Brown.

Critics told a week-long public inquiry earlier this month that the six blocks of properties rising up to seven storeys high would resemble an office block and bring even more traffic congestion to the town.

Despite rejecting the appeal for planning permission, Mr Brown said Hebden Royd Development LLP had provided sufficient justification for the level of extra parking proposed.

"I do not disagree with English Heritage and the Commission for Architecture and Building Environment that development incorporating a number of the design characteristics would contribute to the architectural vocabulary of Hebden Bridge.

"In addition, the proposed paved and planted area leading off Commercial Street would be a pleasing addition to public space within the town.

"But when seen from Garden Street and Albert Street, the overall massing and scale of two blocks would be would be visually dominant and unacceptably harmful to the character and ambience of the locale."

Anthony Rae, who represented objectors at the planning inquiry, said the inspector turned down the application in record time because it was too large.

"It's the decision we expected because, in truth, the developers did not put up a good case at the inquiry." he said.

Janet Battye (Lib, Dem, Calder) said: "There should have been an open discussion about this site before the council engaged a developer and caused such resentment.

"Now we need to harness public interest and come up with a more acceptable proposal," she said.

Calderdale Council chose Hebden Royd Development LLP in 2005 to develop the former housing site at Garden Street and create more parking space at no cost to the public purse.

Hebden Bridge architects Studio BAAD designed the proposed development. Nobody there was available for comment.