A new development of commercial units, homes and a primary school in Shaftesbury will bring more than £1million of investment for the town.

The site, south of the A30, will be developed by South Cost after outline approval was secured on appeal.

Land director Sharon Eckford said: “We see mixed use developments of this type to be vital in sustaining the economic vibrance of communities and our proposals for this scheme aim to deliver a hub for working, learning and living.

“The outline plans include a primary school, sports pitches, public open space and up to 135 homes – of which a third would be designated as affordable. There is also a focus on supporting jobs in the town with the provision for industrial and commercial properties within the development.

“The planning inspector concluded that the scheme brought significant benefits to the town. The decision to approve our application also secures around £1million of Section 106 payments towards local infrastructure and services, including health, education and public rights of way improvements.”

The development is set to incorporate industrial starter units and an area designated as flexible commercial use which may be used for a hotel and non-food retail or a residential care home, depending on the needs of the community.

Sharon Eckford added: “Our plans for this site will include homes to suit a range of buyers, from those looking to get onto the property ladder for the first time to families seeking more space.

“Work will now commence on the details planning proposals.”

The site is opposite the new Saxon Grange development, on Higher Blandford Road, where work is due to start on a further 55 new homes.