HUNDREDS of jobs could leave Alresford if a controversial housing plan is approved, councillors have warned.

The Dean industrial estate is set to be redeveloped for housing under the Sun Lane scheme.

But town chiefs are taking on Winchester City Council to avert what they fear could be significant job losses.

"The plan is unsound because there is a risk to loss of employment to the town."

Two major firms have told the Chronicle they are uncertain about moving to a new 'employment zone' or where else they could go.

The 312 jobs on site could move out of town if businesses do not move to Sun Lane, Alresford Town Council chairman Lisa Griffiths told a packed meeting.

"There's a real risk we will lose jobs from Alresford because businesses will not relocate," said Cllr Sam Kerr-Smiley, a prominent critic of the scheme.

It is the latest twist in a row over the city council's Local Plan Part Two, which would see hundreds of homes built in Alresford.

As reported by the Chronicle, residents are divided between the proposed plan, putting the bulk of housing on farmland on Sun Lane, and an alternative which spreads development out.

However, the alternative plan has been dismissed by the city council as 'unviable'.

The plan for Sun Lane would also see part of The Dean transformed into 75 houses.

The meeting heard The Dean accounted for a third of Alresford's jobs.

One resident said: "The biggest employer has 100 people working there and they intend to double that, and they said they would rather move out. That would be a massive loss to the town."

Councillors agreed to challenge the plan on the grounds it would lead to job losses.

Resident John Bernie was applauded as he criticised the process and accused the town council of not listening to residents’ views and being led by the city's head of strategic planning, Steve Opacic.

This was quickly denied by Cllr Margot Power, who said: "If there was a better alternative plan Mr Opacic would have agreed to it.

"He looked at it and commissioned advice that cost money to compare the two plans."

Cllr Power told the Chronicle that plenty of businesses were interested in Sun Lane.

Firms in The Dean are tight-lipped over whether they would move to Sun Lane.

Bosses at Butler & Co Chartered Accountants which have had an office in the town since 1992 and been located at The Dean for five years say that they would not want to move out of the town.

They said they would only consider moving to Sun Lane if there are appropriate facilities and good parking for staff and customers, but added that the location was not ideal as it was not within walking distance of shops and restaurants in Alresford.

CleverTouch Marketing which employs more than 50 people confirmed that they intend to stay in the town, but it is unclear whether they would move to the Sun Lane site.

A spokesperson for the Alresford Chamber of Commerce said: "We believe the strength of the Alresford business community is its diversity, and we are always looking for the opportunity for potential businesses to grow in Alresford.

"We recognise that there is a potential for us to lose manufacturing jobs to another location outside of Alresford, however The Alresford Chamber of Commerce wouldn't want to see the diversity of the local business community get diluted."

Huxley Golf declined to speak to the Chronicle and bosses at Warwick Trailers were unavailable for comment.

Local Plan Part 2 will be submitted to the Government in March, with examination hearings in early summer before the inspector reports next October.

If approved, the plan will be adopted in November 2016.