Hundreds of residents felt they were left “on a hiding to nothing” following a council’s U-turn over a plan to build 250 homes on playing fields in their village.

Developers Trenport Investments took Medway Council to a public planning inquiry after councillors unanimously rejected its controversial scheme in Cliffe, near Rochester.

But days into the hearing, officers withdrew their case after Trenport’s legal team said they would be applying for full costs to be awarded against the authority, estimated in the region of £100,000.

It’s claimed they gave the council 24 hours to respond, which it did, citing “significant financial implications of continuing to defend the appeal”.

A statement said: “The council has carefully considered its position following the evidence heard in the first week of the inquiry and has decided that it is necessary to withdraw its reasons for refusal.”

A spokesman for Medway Council said: “Medway Council’s assistant director of legal governance exercised his delegated authority to make the decision.”

The last-minute move has angered villagers who were represented at the appeal, some of whom accused the council of “caving in” and presenting a weak case against the heavyweight argument led by the Trenport legal team

Others described it as a “David and Goliath” situation.

The proposal, for both sides of Church Street would mean the loss of the much-used ACPM Cliffe Recreation Ground which is home to several sports clubs. It would also impact on agricultural land and on the busy B2000, the main route through the village.

Cliffe and Cliffe Woods Parish Council, as well as Cliffe Woods Residents’ Group, raised strong objections from residents including traffic congestion, parking problems and lack of GP surgeries, schools and shops in the area.

Parish councillor Chris Fribbins said: “Our case just disappeared. There was me up against seven people representing Trenport, including a KC and planning expert, which could easily be intimidating, but I think we put our points across.”

Mr Fribbins, who has represented the parish for 40 years and is a former Medway councillor, said some of the arguments put by residents were “very emotive”.

He said: “Some who have lived there for 50 years spoke of a lack of GP surgeries and shops. Community facilities in Cliffe are poor, there is just one shop. But this is difficult to relate in planning terms.”

He said: “The chances of us winning are remote. We have an outside chance that the inspector might ask for further consultation.”

He added that a neighbourhood plan for Cliffe and Cliffe Woods, just adopted by Medway councillors, would give people a say in planning applications, which was a “thread” of hope for the area.

MP Kelly Tolhurst said: “I am incredibly disappointed that Medway Council is not backing the unanimous rejection by councillors.

“I am requesting to make representations to support residents.”

One resident wrote in an email: ”It just seems that money talks and if this is the case what is the point of Medway Council objecting if they can be bullied into withdrawing their objections.”

Several campaigners could not get into the hearing at the council’s Gun Wharf headquarters in Chatham on Tuesday because it was too full.

“This really is a David and Goliath situation...”

One, Julie Rousell, captain of the bowls club, said: “It’s very frustrating. We feel we are not being heard. We can’t afford a barrister to speak on our behalf.

“This really is a David and Goliath situation.”

Medway Council's planning officers had recommended approval for 250 homes for the outline application, but in October councillors unanimously went against them and refused the plans.

Trenport’s proposals also include a community hub, and affordable homes, There were also plans to build alternative recreation and sports facility near Buttway Lane in Cliffe.

The inquiry closed on Wednesday and the inspector is expected to publish a decision in about six weeks.