A family business which spent £250,000 transforming a former pub into a nursery has been refused planning permission for the scheme.

The former Bluebell Pub at the junction of Leeds Road with Carr Lane in Windhill has been renovated and kitted out with play equipment for up to 66 children aged up to five. A total of 35 parents had booked their children into the nursery.

The company, Bonbons, went ahead with the renovations before being granted planning permission. And at yesterday's meeting of the Shipley Area Planning Panel the application was unanimously refused on grounds of traffic congestion and pedestrian safety.

Chairman of the panel Councillor Robin Owens (Con, Bingley) said: "This is one of the most inappropriate applications I have seen in a long time."

Bonbons executive Gary Channon said the business is now considering its next move. "At the end of the day we were very poorly advised," he said. "Our adviser was prepared to bet his fees against yesterday's decision."

Mr Channon said he would only appeal against the decision if he thought there was a chance of success.

"We have made a mistake, but we certainly didn't come in to this making the assumption that we could bully our way through planning," he said, "We are more naive than sharp."

Councillor Phillip Thornton, (Lab, Shipley East), said the Council was trying to alleviate traffic problems on the road and a nursery at that site would add to the congestion. "The applicant should have come to the Council before spending such a lot of money," he said.