Bill Ibberson, managing director of Younger Homes (Northern) Ltd, (YHNL), said he was "euphoric'' after emerging the victor from the bitter struggle which revolves around a proposed scheme to redevelop Suden's Mill in the town centre.

The council and its development partner, CDP of Elland, wanted to go ahead with a scheme that would see a new swimming pool, retail units and a road bridge built in the town.

Those plans appear now to have been dealt a deadly blow following planning inspector Stephen Amos's report. He recommends that the Secretary of State should not confirm the compulsory purchase order that the council had sought.

He questions the financial viability of the scheme proposed and in a startling phrase from the inquiry he recalls that the "expert witness for CMBC/CDP also agreed that a developer would be 'bonkers' to proceed with the scheme.''

He adds that: "It is my conclusion that the development scheme would be likely to make a loss, which could be as much as the figure of £1.3m put forward by YHNL.'' Ultimately the scheme could even generate losses "by the order of £4-5m.''

Other factors he says also weigh against the scheme and he concludes: "For all those reasons I do not consider that it has been shown that there is any reasonable prospect of the development scheme going ahead.

"In circumstances where there is so much uncertainty about that matter, it has not been established that public interest considerations would outweigh the private losses that would result from confirmation of the order.''

Mr Ibberson, who has proposed his own £100m plan, said: "We are absolutely delighted with the result though I am disappointed that it went the way that it did in terms of the animosity that has been generated.

''The fact is that the council and CDP were offered the site prior to the CPO and declined to buy it. This fight has been going on for six years now and I would like to have a fresh start and for the new chief executive of Calderdale Council, (Owen Williams), to ring me up on Monday morning and I will sit down with him on Tuesday and let's get on with creating a scheme that would provide all the facilities that Brighouse would be proud of.''

Ann McAllister, leader, of Calderdale Council, said: "This morning, Calderdale Council received the decision of the Secretary of State relating to the proposed compulsory purchase of land at Mill Royd Street, Briggate and Bridge Road, Brighouse.

"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."

Last year the Yorkshire Post revealed that solicitors acting for Mr Ibberson had accused Calderdale of fraud over the purchase order. An independent inquiry was immediately launched by the council.

Mr Ibberson said he has since had two meetings with the police but was still waiting to see "whether they are going to proceed.''