PLANS to transform the historic Mechanics' Institute will be put under the microscope after the Government announced there would be a public inquiry into proposals.

Developer Mathew Singh wants to convert part of the 150-year-old building into a 118-room hotel with a large glass extension. Part would be a centre for businesses in the town.

But the scheme now lies in the hands of John Prescott's department for The Environment, Transport And The Regions which called in the application after objections over its design.

Coun Michael Dickinson (Lib Dem, central) said: "I think the call in is good news because local residents are against the plans."