Bourne Town Council recommended that South Kesteven District Council reject the application from housing association Longhurst Homes. Members felt there would be too many homes and said there were historical pledges that the land would be used for business or industry.

Mayor Shirley Cliffe said: “I am dead against it. 30 years ago this was earmarked for no residential development.”

The housing association has applied to build a mixture of flats, houses and bungalows for rental and shared ownership.

Coun Linda Neal said: “The land is labelled as for employment use on the local plan. We need jobs to be able to afford the houses.”

The land is currently vacant agricultural land between Bourne Abbey Primary School’s playing field and the AHF Furniture Store. The primary school field would not be affected.

After the plans were submitted Longhurst’s head of development Nick Worboys said talks had taken place with the district council.

She said: “The site is currently allocated as employment land within the local plan, but such is the need for sustainable affordable homes in Bourne, South Kesteven District Council has welcomed an application for new properties offering a mix of social rented and shared ownership homes.”

Of the 65 homes, 45 would be rented and 20 would be shared ownership. They would be a mix of two, three and four bedroom houses and two bedroom bungalows and flats with 104 car parking spaces.

Bourne-based building firm Larkfleet Homes is set to build the homes on behalf of the housing association. If the plans are approved by the district council building work could start in March.

An archaeological survey would have to be carried out to establish whether there are any Roman remains at the site.