Council leaders and officers held a special meeting last night to consider their next move after detailed plans for the Sugden's Mill site were thrown out by a planning inspector.

Deputy Conservative leader Stephen Baines said: "We have some ideas which we hope to announce in the next day or so."

It is believed the council might give the go-ahead for a pool to be built on another part of the mill site or in another area of town, but Coun Baines (Northowram and Shelf) said it was too soon to comment.

Planning inspector Stephen Amos refused to grant the council compulsory purchase powers to acquire land for a pool, retail units and a road bridge because he said it could generate losses of up to £5 million.

Paul Rogan (English Democrat, Rastrick) said he hoped the decision would mark a turning point in the Sugden's saga.

He said: "I hope all parties will sit down together so that a way
forward can be found which will positively benefit Brighouse."

As chairman of Brighouse Forward Partnership, Coun Rogan said he would be seeking to arrange a meeting for all stakeholders.

"Now we must all work for Brighouse and find a solution to the old pool closure, to ease traffic congestion and provide a river/canalside development that will enhance the town," he said.

Brighouse councillor Colin Stout said he was stunned by the inspector's decision, which followed a lengthy public inquiry.

He feared the ruling could turn future developers away from investing in the town.

He said: "It is 10 years of wasted time. We are back to square one. It is a huge blow for the town."

A development brief for the former flour mill was approved by the council in February 1998 but then followed a series of delays and court hearings.

Major landowner Younger Homes (Northern) Ltd, of Brighouse, has repeatedly objected to the council's plan.

Managing director Bill Ibberson has also called for talks to move his scheme forward.

His proposals for the site, which features two landmark silo towers, include a health centre, sheltered housing, apartments, hotel, swimming pool and road improvements.