Dismayed dentists have vowed to appeal after Castle Point Council vetoed plans for a new NHS practice and training centre.
Bosses at the Benfleet Dental Clinic hoped to convert a former eye hospital in Downer Road, Benfleet, into a larger premises for patients.
But officers at Castle Point Council turned down the proposals because of concerns over a lack of parking.
Speaking of his shock at the decision, surgery partner Stephen Denny said: "We went down to the town planning office on four or five occasions and received a very positive response.
"We were expecting it to go through."
He added: "I am surprised because we approached this in the right way and mail-dropped all the neighbours about our plans. It is early stages and we intend to appeal."
Mr Denny said the site was "perfect" for a new NHS surgery and the team had high hopes to extend the current building to incorporate four treatment rooms.
He said: "They are saying there are not enough parking spaces to justify the number of surgeries. There is a shortage of NHS dentists and we are prepared to offer placements for young professionals. It's just a very restrictive situation."
Partners at the surgery bought the new site in October last year, with a view to opening bigger NHS premises and keeping the current clinic, in Benfleet High Road, for private consultations.
Mr Denny said he and his colleagues had already applied to become a training practice with a view to taking on new graduate NHS dentists in July.
The clinic employs four dentists and two hygienists.
According to the council's planning report, the current site proposals failed to provide adequate on-site parking.
Officers maintained the plans were likely to lead to cars parking in the highway, obstructing traffic and possibly endangering other road users.
The site is close to a busy veterinary practice and Indian takeaway.
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