Developer Mike Osborne's planning application for 17 homes in Luckington has been approved, but district councillors rejected his offer of an £80,000 donation for the village school.

Mr Osborne offered the cash if his planning application was given the go-ahead, but district councillors decided not to include the monetary offer in the conditions of the agreement.

Plans for the homes, five of which would be low cost, were approved last Wednesday.

Councillor Doreen Darby said of the offer of cash for the school: "Legally we would be in considerable trouble if we did accept it. The rumour would go round that you could buy a planning application from North Wiltshire District Council. That would be shocking and totally improper."

The Osborne family, from Southend House, Luckington, said in their planning application that the development was a way to help keep the village alive.

Angry villagers objecting to the plans submitted 33 letters of objection to the district council, citing over-development, a lack of parking and pedestrian safety as major concerns.

But 26 residents supported the planning application because they felt it would provide low cost housing for the village.

District councillors rejected the planning officers' recommendation to refuse the application during the meeting.

Councillor John Thomson said: "It will enhance the conservation area and provide much needed small buildings to ensure the village continues to thrive and does not die like so many others.

"This is a real life community and real village people want this."

Coun Patrick Goldstone said: "There are pubs, schools and shops. How many villages in our district can say that these days? This is 29 per cent affordable housing and will keep local people in the village."

The site has considerable planning history but outline approval for the development was given in October 2003.

Coun Thomson said after the meeting that the Osborne family had given its word it would still donate the £80,000 to the school.