Councillors last night rejected plans to build a new housing estate with up to 700 homes.

Members of Swale council's planning committee gathered for an extraordinary meeting about the proposals, which would have seen the properties built at Barton Hill Drive, Minster, Sheppey.

Representatives voted to chuck out the scheme by 11 to four, with one abstension. However, the decision still hangs in the balance after head of planning - James Freeman - called it in for further scrutiny.

The decision throws doubt over plans to widen the Lower Road, as funding and land would have been freed up if the plans went ahead.

Mr Freeman, asked councillors to let officers have powers to approve the outline application from SW Attwood and Partners, subject to conditions and a section 106 agreement.

As part of the agreement, the developer would have been forced to contribute more than £1.2 million towards the £4.85 million project to widen the 1.1km stretch of the Lower Road - from Cowstead Corner to Barton Hill Drive.

Kent Highways needed the cash to be released by the scheme - which has already seen a newly-built roundabout - if work on the second phase of improvements was to start in March, it was revealed.

The evening saw councillors quiz planning and highways officers for about two hours before debating the proposals.

A Swale council spokesman said: "The decision to call in the application was made – as per the council’s constitution – to ensure the committee’s decision could be justified by national planning legislation, planning case law and local planning policy.

"If an application is rejected, the applicant can appeal, and if the committee’s decision was not based on sound planning reasons the appeal is more likely to succeed and the council could incur unnecessary expense.

"The call in system is designed to allow time to review the position and provide further evidence to the committee, such that a decision that is sound in planning terms is more likely to be arrived at. The application will be reported back to planning committee in due course."

Concerns raised included the applicant using land for the site, which was not in the council's Local Plan - a blueprint of what can be built where.

Questions were also raised about the M2 Junction 5 for Sittingbourne and Maidstone as Highways England said no more than 250 homes could be built on the estate before the motorway junction was upgraded.

One member of the public was allowed to speak at the meeting to oppose the plans.

Spokesman Andy Fisher said: "The Lower Road already struggles even with the new roundabout and people are worried that if this development is built and a dual carriageway put in that the floodgates will open for housing estates.

"Even now a minor accident is enough to bring the Island to gridlock very quickly."

Speaking for the agent, John Boyd, said a delay in the improvements could mean other grants for the Lower Road works could be lost.

It is expected the decision will be appealed.