A £6m upgrade of Lydden Hill race circuit has been rejected amid concerns it would cause “significant harm” on its surrounding area.

Dover District Council’s planning committee rejected plans – including two grandstands, a hospitality building, 14 engineering units and a new access road – at a specially-arranged meeting last Thursday.

The circuit can currently only be used 52 days a year and, as part of the plans, owner Pat Doran wanted to open the facility more often to allow for drifting, driving schools and other events to take place.

The former British Rallycross champion said the improvements were needed to make the business sustainable, and told councillors he would consider selling the site if permission was not granted.

Mr Doran said: “We haven’t asked for any further race days or any additional track days, but we are looking to expand events to create a circuit that local families can enjoy with other activities, such as show jumping, cycling, classic car shows, hospitality days, driver training and the list goes on.

“The circuit is not viably run on 52-day use, so we would have a look at selling the circuit to someone who would have the investment for McLaren’s plans, which would obviously bring greater economical benefits but may also bring a lot more disruption.”

Outline plans were granted permission in the 1990s for McLaren to use the site as a test track, but they have since located to a purpose-built campus in Surrey.

Lydden Hill sits in an Area of Outstanding Natural Beauty, and major concerns were raised about the impact the 14 industrial units, as well as a new area for camping, would have on the environment.

A representative of the Crush family, who live adjacent to the site, said: “Great weight is to be given to conserving landscapes and scenic beauty in Areas of Outstanding Natural Beauty.

“Exceptional circumstances justifying major development must be demonstrated and it must be in the public interest – neither has been demonstrated.”

The applicant claimed the expansion would support 122.5 full-time equivalent jobs – compared to the current 30 – as visitor numbers would increase to just shy of 100,000 if the circuit regained its World Rallycross Championship

They also suggested the average visitor would spend £15.35 in the district.

Penelope James of the Wootton Environment Protection Group raised doubts on the data, warning the committee: “Do not be hoodwinked into thinking the circuit is the golden ticket that will bring wide-ranging financial benefits to the Dover area.

“On the contrary, it is clear the lion’s share will be reaped by the circuit through its proposed camping facilities, fast-food stalls, and evening entertainment.”

The committee rejected the application, in part, as it would cause “substantial harm to the character of the countryside, and the tranquillity and landscape and scenic beauty” of the area.

Only Cllr Peter Jull (Con) voted against rejecting the plans, which received over 500 letters of support.

Cllr Simon Bannister (Lab) said: “I’m a fan of motor racing, but I’m also an environmentalist who greatly values the countryside of this area, so we must strike a balance.

“Do the economic benefits – the raising of the profile of Dover through the promotion of motorsport – outweigh the negative impacts on the countryside? I don’t think they do.”