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Campaigners fighting plans for up to 125 new homes in Pontllanfraith have been dealt a blow after it was decided the application will not be decided by Welsh ministers.

Caerphilly County Borough Council’s planning committee approved the housing plan on the site of the former council offices in the summer, despite concerns over the impact on the nearby Sir Harold Finch Memorial Park.

Campaigners asked for the plans to be called-in for determination by ministers, but Welsh Government has decided the application will be determined by the council.

The call-in requests were made due to concerns over the impact of the development on a Site of Special Scientific Interest (SSSI), potential damage to the integrity of the Sir Harold Finch Memorial Park and some of the site not being designated for housing.

Concern over loss of trees and potential impacts on protected species were also raised.

A council planning report said the development “does not encroach on either the local nature reserve or the SSSI so what the authority considers to be the Sir Harold Finch Memorial Park will be unaffected”.

However the development would result in a loss of 13% of land allocated for leisure in the council’s Local Development Plan.

A Welsh Government letter on the decision not to call-in the plans says there is “some ambiguity concerning the perimeter of the memorial park”.

“The officer’s report has regard for the issues raised and comes to a reasoned view, and whilst there is no evidence to substantiate the view either way on the perimeter of the park area, management of the park is the responsibility of the local authority,” it adds.

The letter also says that the council has considered the loss of land allocated for leisure in the LDP and concluded this is justified due to “the significant shortfall in housing delivery”.

“There are objections to the application, however, they are confined to the local area,” the letter says.

The ‘flagship’ scheme, a collaboration between the council and housing association Pobl, includes 83 affordable homes.

Blackwood councillor Kevin Etheridge said he still has concerns over the development encroaching onto land not allocated for housing in the LDP.

“I hope officers will enforce the reserved matters conditions, and ensure the remaining park is properly protected,” he said.

“I should like to thank the residents for contacting me in this regard as I still believe only the brownfield site should have been considered here.”