An ‘outstanding’ nursery near the Powys border at Welshpool has had to find a new home after it was told it could no longer use its current building and plans for a new one were refused.

Ladybugs Nursery and Pre-School had been based at Wattlesborough Village Hall, but in June plans were unveiled for a new purpose-built premises next to the derelict Halfway House Inn.

However the proposal has now been rejected by Shropshire Council – days after the nursery was told to move out of the village hall.

Planning officers refused the application for the new building on three grounds, saying it would be “unsustainable development in a countryside location” as most users would be reliant on cars.

They also said the lack of a transport assessment meant Highways England had not been able to assess the potential impact on the road network.

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The final reason for refusal was that the application did not address the impact on the listed pub buildings or consider the potential for the nursery to be accommodated within them.

The planning application had been lodged by the Peake family, of local farming business Peakes Poultry, who bought the Halfway House and adjoining Seven Stars Inn in 2020.

They submitted plans to refurbish the larger pub and turn the smaller one into a home, alongside building a community pavilion on the adjoining field.

That application was later withdrawn, though plans for the nursery said it would be built in place of the proposed pavilion.

In a statement submitted with the nursery plans, the Peakes said when they were approached by Ladybugs about providing a possible site for them “everything fell into place”.

The owners of Ladybugs meanwhile said they needed to relocate as their rent at the village hall had “increased considerably” in recent years, but they could only open 9am to 3pm Monday to Thursday in term-time due to having to share the hall with other users.

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However in a letter to the nursery owners, the village hall committee disputed these claims and stressed that the nursery had previously been paying far less than other users of the hall.

The letter said: “The trustees and the executive committee feel that there is an irreparable breakdown in the relationship between the village hall trustees and the owners of Ladybugs Nursery and Pre-School Ltd.

“The village hall will therefore no longer accept bookings from Ladybugs Nursery and you are required to remove all equipment relating to the nursery by 1 September 2023.”

Following the double setback, the nursery owners have arranged to relocate to nearby Westbury Village Hall.

Ofsted confirmed the change in registration had been approved, meaning the nursery is free to start operating at the new location.

Mother and daughter Sharon and Alex Fellows opened Ladybugs in 2016, replacing a previous nursery which had operated from the site since 2000.

The nursery was rated ‘outstanding’ in all areas at its first Ofsted inspection in 2019.

Ladybugs was approached for comment.