Pub objectors lose judicial review

The Gresham Hotel is in one of Tyneside's busiest drinking areas

Residents in an upmarket area of Newcastle have failed to prevent a neighbourhood hotel being turned into a massive drinking venue.

Homeowners tried to block a plan to convert the former Gresham Hotel in the Jesmond area of the city, into a 1,000 capacity pub.

Residents feared the plan could lead to vandalism, drunkenness and public disorder.

They won a judicial review after a High Court judge said they could challenge a decision by Newcastle magistrates to allow Ultimate Leisure to go ahead.

But on Thursday Mr Justice Owen threw out their review challenge.

The company had made two unsuccessful applications for a licence, but faced vehement opposition from local residents, Newcastle City Council, police and owners of neighbouring licensed premises.

Residents claimed the company bought a gay bar in the city centre with the intention of transferring its licence to the Gresham Hotel - thus shutting out objections.

Locals argued Ultimate Leisure had bought the gay bar knowing it was likely to be subject to a compulsory purchase order - which would allow it to transfer the alcohol licence to another venue.

But Mr Justice Owen said: "Ultimate were entitled to take full advantage of the existing legislation by adopting the course that gave the best chance of success.

"In my judgement, it cannot be argued that Ultimate's application amounted to an abuse of process".

The judge also rejected claims that the magistrates' decision had violated their human rights.