An action group set up to stop a 245-bed “care village” being built in Shropshire is toasting victory just days after it was formed, as developers scrapped their planning appeal.

Proposals for the controversial development earmarked for a site off Pulley Lane between Bayston Hill and Meole Brace were set to go to a public inquiry after developer Maximus appealed to the Planning Inspectorate.

But it has now emerged that the firm has withdrawn its appeal, meaning the development will not go ahead.

The SY3 Action Group was set up this week involving bodies such as Bayston Hill Parish Council, Bayston Hill Action Group, Meole Estate Community Action and the Campaign to Pro tect Rural England.

They had vowed to fight plans for the care home which they claimed would destroy green belt land and see Bayston Hill swallowed up by Shrewsbury’s expanding urban sprawl.

Action group chairman Peter Davies said members were delighted with the announcement.

He said: “I would like to thank the media – especially the Shropshire Star – for their assistance in publicising this matter and also to Bayston Hill Parish Council, Bayston Hill Action Group, Meole Estate Community Action, Meole Brace residents and local councillors, who worked together to oppose the appeal on various grounds, including significant planning policy objections.

“We are all delighted that the appeal has been withdrawn.

“People still need to be aware of development plans wherever they occur and that they contribute to the Shropshire Council’s Local Development Framework process and policy document to ensure that future development schemes are processed in a democratic and sensitive way.

“The superb countryside between the town and Bayston Hill should remain unspoiled and open to protect the rural character of the area and we will be watching any future proposals with great interest.”

Members of the group had raised concerns about the plans, including traffic safety, potential flooding problems and disturbance on wildlife.

Shropshire Council spokesman Gareth Proffitt said: “We can confirm that the developer has decided to withdraw their appeal against the decision to refuse permission for this development.”

Nobody was available for comment from Maximus.