Freeport Fleetwood said 400 new jobs would have been created
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Controversial £20m plans to expand a shopping centre in Lancashire have been refused by the government.
Freeport Fleetwood Shopping Village wanted to double the size of its site, creating 400 new jobs.
But Lancashire County Council and Blackpool Borough Council opposed the proposals, saying trade in nearby towns would be damaged.
Deputy Prime Minister John Prescott, who rejected the plans, said that there would be a negative impact on Fleetwood town centre if the expansion went ahead.
He also said customers and staff would only be able to access the shopping centre by car, creating too much extra traffic.
But the leader of Wyre Council, which supported the plans, said he was "bitterly disappointed" the government had rejected the proposals.
Councillor Alan Vincent said it would be a blow to employment in Fleetwood.
More than 200 businesses in the town had signed a petition supporting the expansion.