A leading businessman today predicted the decision to axe the Hastings and Bexhill bypasses would trigger an exodus by firms.

Paul Evans, managing director of Marshall Tufflex, one of the town's largest employers, said expansion plans and efficiency were being stifled by poor transport links.

Transport minister John Spellar yesterday dashed hopes for the twin Hastings and Bexhill bypasses.

He said the scheme would carve up the countryside and there was no convincing case to show it would aid the regeneration of Hastings.

Mr Evans said the decision would drive away new businesses and those that needed to grow.

He said: "This was to be the first step in realising the vision of regenerating Hastings. It was as much about creating confidence as regeneration.

"Firms who are looking to expand may now look up-country where there is a better infrastructure. There is no opportunity for expansion here."

He added: "There is a sense of huge disappointment and frustration that we didn't get anything at all. We had almost unanimous support yet it seems the environmentalists have more influence.

"We are one of the biggest employers in the town, with 450 staff, and our drivers have to leave at 5am each morning.

"The roads must cost us half-an-hour each day on every delivery. The bypass was a chance for us to become more efficient."

But the green lobby, which led vociferous campaign against the bypasses, said a sustainable transport policy would bring prosperity right along the South Coast corridor.

John Hughes, of South Coast Against Roadbuilding, said: "The business community and East Sussex County Council have to be positive and not throw a childish tantrum over the loss of their pet scheme. This is the decision we had hoped and prayed for.

"It's a victory for common sense and a reward for all the hard work done by consultants and members of the many groups who have spent the last four years fighting to save for future generations the magnificent countryside around Hastings."