PLANS to build a massive prison in Runwell have been put on ice at the last minute.

The Ministry of Justice wanted to build the 1,500-inmate jail on the site of the old Runwell Hospital, in Runwell Road, Wickford, and the application was due to be considered today, by Chelmsford Council.

But the ministry announced yesterday it was withdrawing its proposal for the Category B prison and tonight’s planning meeting – which was arranged just to deal with the Runwell application – has been cancelled.

The decision was made after council planning officers recommended councillors turn down the application to build the jail because of the loss of space for new housing.

A spokesman for the ministry said the withdrawal of the planning application was only a temporary glitch and it is committed to building a new jail at the site.

He added: “We have withdrawn our existing planning application in order to resubmit it once the outstanding issue is resolved.

“This decision was taken after careful consideration of a recommendation for refusal of planning consent given by officers at Chelmsford Council.

“Its recommendation was made on the sole ground that despite the hard work of all parties involved, the loss of the site for housing has not been satisfactorily mitigated against.

“We aim to resolve this issue as soon as possible. We are strongly committed to the proposal at Runwell and the major benefits it would bring to the local economy.”

The ministry refused to confirm whether a revised application for the prison would now include plans for residential homes.

In 2005, the Secretary of State for Health submitted a planning application to Chelmsford Council for 624 new homes, shops, a school and recreational facilities on the site of the old hospital.

The council granted planning permission, subject to a section 106 agreement – a legal arrangement in which developers pledge cash towards community improvements to help get approval.

But the section 106 was never completed, so planning permission was not issued.