Parents campaigning for a new free school in Ingleby Barwick on Teesside said they were "devastated" the application for planning permission had been turned down, because they "had hoped the council would see sense".
The school has been approved by the Department for Education and is due to open this year, but plans for a purpose-built building were rejected by councillors.
Unfortunately it is the result we expected. It is up to the landowner and the developers to appeal the decision - it was their application - but this is not the end of the journey for Ingleby Manor Foundation Trust.
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