Surrey's plans for a 170-bedroom hotel at The Oval have suffered a major blow after planning permission was turned down.

The four-star property, in conjunction with Arora International Hotels, was to be part of a £35million upgrade of the ground - including the addition of 1,600 extra seats - ahead of the 2009 Ashes series.

But, following opposition to the work from a small group of local residents, Lambeth Council has rejected the hotel plan after the Health and Safety Executive (HSE) warned that there would be a risk of a major incident because the planned area for development is close to the famous Kennington gas holder. Surrey are planning to appeal against the decision.