A council faces a possible £1 million bill after losing a long-running dispute over a prime development site in Brighouse.

A lengthy public inquiry was held over the Sugden Mill site, which Calderdale Council wants Elland company CDP to redevelop creating shops, a replacement swimming pool and a new road bridge.

But mill owners Younger Homes has fought the plans, taking the matter of the land being acquired by compulsory purchase order to the inquiry, which lasted 36 days and ended in March last year.

Planning inspector Stephen Amos has ruled that the CPO should not go ahead - much to the delight of Bill Ibberson who bought the empty mill after it closed in 1997.

He said he was "euphoric" over the news and said his scheme would create a new pool, but would include offices, apartments, hotel, health centre and library, with some retail space - and would not involve the closure of Mill Royd Street.

"I think that we should sit down with the Council and work out a scheme that's acceptable and provides the facilities that the people of Brighouse need," he said.

"I hope the chief executive will call us to talk about how this can work. It's been six years and we are absolutely delighted with the result.

"We estimate the total cost of the inquiry was about £1m, which the Council will be responsible for meeting. Our claim is for more than half of that."

The 3.77 hectare site includes the town's pool, a petrol station, the Black Swan pub, offices and a car park. It is bounded by the Calder and Hebble Navigation, Huddersfield Road, the River Calder and Bridge Road.

The decision letter states that while the inspector accepts that there is a need to redevelop the site, he believes there are a number of "potential impediments", particularly the "financial viability of the scheme and resource availability".

It goes on to say that the inspector "does not consider that there is any reasonable prospect of the development scheme proceeding".

In addition, allegations that the Council misled the inquiry are being investigated, according to Mr Ibberson, although the Secretary of State "does not consider it necessary or appropriate to pursue them further" in light of the CPO not being confirmed.

Calderdale Council leader Councillor Ann McAllister said: "Naturally, I am disappointed with the decision of the Secretary of State to accept the recommendation of the planning inspector not to confirm the order. An integral part of the proposed development for the site was a new swimming pool. I would like to assure the people of Brighouse that I am committed to providing them with a pool at the earliest opportunity."

No comment on the costs or the on-going investigation was available.