BUSINESS leaders in Hampshire have fired warning shots that if Station Approach is not built soon large employers will leave Winchester.

It comes after the multi-million pound scheme for office space and flats near Winchester Train Station was derailed when councillors voted against pressing on with the plans with the winners of a design competition.

Now the scheme has been set back for at least a year.

The council meeting last Wednesday heard how two major firms in Winchester, Denplan and Lane Clark & Peacock LLP had earmarked moving to office space at Station Approach, which would suit their expansion plans.

The meeting heard that if the scheme is not hurried up, these firms could move out of the city.

However speaking to the Chronicle, managing director of Denplan Steve Gates downplayed fears they are poised to leave the city, saying they remain "committed" to Winchester and have a lease on their premises until 2021.

The scheme could create around 500 jobs, and an additional 500 jobs in construction and pump £30m into the city, according to Rob Turner, associate director at Grant Thornton who was aking a case for the scheme to move ahead before councillors voted on it.

At full council Winchester City Council leader Stephen Godfrey spoke of the business advantages and the need for office space in Winchester, he added that the council were hoping to secure a grant of £7.7m of local enterprise partnership (LEP) funding as part of the project.

Catherine Turness of Winchester Business Improvement District (BID), spoke at an overview and scrutiny committee meeting of the need for firms in the city to expand.

She explained a BID survey revealed 14 firms said they want to expand and "major employers" could leave the city unless a scheme is presented to them.

Managing Director of Denplan Stephen Gates said he was "disappointed" with the decision, but said the firm will not be leaving in the city in the near future. 

Mr Gates said: "I think it is vital, businesses bring in employment into the city that itself brings money into the local economy and the restaurants and shops, the more businesses we have the better it makes us stronger as a local economy and there is not enough high grade office accommodation of the scale that was at Station Approach near the city centre.

"I was very disappointed with the decision not only from a Denplan perspective, it sends out a message on the back of Silver Hill as well that we find it very difficult in Winchester to look for new opportunities to make our economy stronger."

Mr Gate's thoughts were shared by Chief Executive of Hampshire Chamber of Commerce, Stewart Dunn.

Mr Dunn said in a statement:“With a slowdown in the country's economy now more likely than not since the referendum result, the need is for the provision of new commercial premises to support the growth of existing local businesses and to draw new economic life into the city.

“Without the development of new modern office premises the city runs the risk of existing businesses having to move to other locations with a consequential likelihood that the office accommodation they currently occupy will be converted to residential use."