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Last Updated: Friday, 18 August 2006, 19:21 GMT 20:21 UK
City centre development refused
Liverpool skyline
The development was turned down following a public enquiry
Developers have lost a long-running battle over proposals for a multi-use development in Liverpool city centre.

Plans for a 160-bedroom hotel, more than 150 residential apartments and business space in two tower blocks near Lime Street Station have been refused.

Liverpool Council rejected the plans last summer so the developers appealed and a public inquiry was held.

But the government has also turned down the plans, saying the proposals would impact too much on surrounding areas.

In a report it claimed that the proposals would impact on the world heritage site, the William Brown Street conservation area and the listed buildings within it.

It also said that none of the benefits of the proposed plans - by Limerick-based developers Chieftain Construction Ltd - would outweigh 'the very real harm' to the townscape and heritage of the city.

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