The decision to grant land for a controversial biomass plant on a Bishop’s Castle business park is to be re-examined after the issue was called in by councillors.

A meeting of Shropshire Council’s economy and environment scrutiny panel will be held in Bishops Castle in early September to discuss a decision taken by cabinet to provisionally accept a bid for a £5 million biomass plant for land at Bishop’s Castle Business Park.

It is hoped members of the public will be able to speak at the meeting and air their views.

Members of the Bishop’s Castle Group opposing the plans have written letters to all 74 Shropshire councillors urging them to reconsider the proposals and have also appealed to south Shropshire MP Philip Dunne.

The decision has been called in by the Liberal Democrat group on Shropshire Council, who have claimed the ruling by cabinet on August 3 may not be “in accordance with Shropshire Council’s sustainable community strategy”.

Residents and environmentalists reacted with outrage in the wake of the decision. Plans for a 2.5 acre community farm were dashed and members of Bishop’s Castle Allotment Holders Society believe they will not be able to sustain allotments at the site.

The biomass plant would use wood chip and energy crops to create 2.5MW of power. The plans, put forward by Bishop’s Castle Biomass Power, successfully passed through a public planning inquiry this year despite hundreds of objections form residents.

No date or venue has been confirmed for the meeting, but Alan Mosley, chairman of the economy and environment scrutiny panel, said it would be held in Bishop’s Castle.

Nigel Hartin, Shropshire councillor for Clun and a member of the Liberal Democrat group, said: “I am pleased that this issue is now going to be further scrutinised since I have concerns that the decision cabinet reached may not be fully in accordance with the council’s sustainable community strategy.”

Councillor Mosley said: “As there is a significant amount of local interest in the issue and as there will be some significant discussion about the issue it would be best to hold the meeting in the locality.

“Members of the committee will be able to look at the area and talk to as many local people as possible.”