A MASSIVE £1bn plan to transform one of Hampshire's biggest industrial sites is set to be given the go-ahead.

District councillors and members of the New Forest National Park Authority (NPA) are being urged to approve outline applications by the owners of the former Fawley power station.

Councillors are being asked to support plans to build 1,380 homes, a 2,100-space car park and a large amount of commercial, civic and employment space.

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A council report says the scheme - expected to create 2,000 jobs - will create "considerable" social and economic benefits.

It adds: "The environmental benefits of redeveloping a site that detracts significantly from the special qualities of the New Forest National Park with a sustainable new community that is expected to be of the highest design quality would also be considerable."

The district council is due to make its decision on July 27.

The following day members of the NPA's planning permission are meeting to debate proposals to build 120 homes and a primary school, plus flood defences and a sea wall, on land surrounding the main power station site.

The NPA has received almost 100 objections to the proposals, including from the New Forest Verderers.

They say: "This is a very significant planning application which, if granted, has the potential to have a seriously detrimental impact on the New Forest.

"All housing developments in and around the New Forest increase recreational pressure and thus have an adverse impact on the forest and its highly designated landscape."

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Historic England says the proposed development will harm heritage assets in the area, including Calshot Castle and neighbouring hangars built during the First World War.

But two parish councils, Fawley and Hythe and Dibden, say the application should be approved - subject to major improvements to the A326 and the B3053.

A report to NPA members says the proposed development will result in the removal of visually intrusive man-made structures.

It adds: "The proposal will have positive public benefits in relation to the landscape and setting of the national park.

"The scheme will generate an increase in traffic. However, appropriate mitigation has been put forward in agreement with the Highway Authority, which will be secured through a legal agreement.

"The proposed development will cause less-than-substantial harm to designated heritage assets.

"This harm has been weighed against the public benefits of the proposals and it is considered that the public benefits outweigh the harm."

But planning permission will be implemented only if both organisations support the proposals put forward by Fawley Waterside.