A senior judge has refused to jail a driver who mowed down and killed an 86-year-old Worthing pensioner while racing to beat the barriers at a railway crossing.

The decision by the nation's most senior judge, Lord Chief Justice Woolf, will determine future sentencing guidelines for road death cases in Britain.

Driver Richard Crump, 30, ploughed into Hannah O'Leary at a crossing on South Farm Road, Worthing, in January 2001, hurling her 6ft into the air and leaving her fatally injured.

She died four weeks later, having never regained consciousness.

Crump was convicted at Chichester Crown Court in November last year of causing death by dangerous driving and given a 12-month sentence, suspended for two years, plus a four-year driving ban.

The Attorney General Lord Goldsmith QC referred the case to London's Criminal Appeal Court, arguing the suspended sentence was "unduly lenient" and Crump should be jailed.

But, after a two-hour hearing yesterday, Lord Woolf said he would not be jailing Crump - although the court may yet impose a tougher, non-custodial sentence.

Lord Woolf, sitting with Mr Justice Gage and Mr Justice Moses, will give his full ruling on the case on Thursday.

Crump's case was heard with three similar appeals and the court's decision will set authoritative sentencing guidelines for road death cases.

Neighbours of Mrs O'Leary, a widow, believe Crump's punishment should have been harsher.

Dennis Plumb, 68, lived in the same retirement complex in Bulkington Avenue, Worthing.

He said: "She was a very nice person and her death was very sudden. It shocked everybody here, it was such a waste of life.

"I did not see the crash so I cannot judge whether he should have gone to jail.

"I see cars cross the tracks diagonally even now and kids run across them.

"But he should have some sort of harsher punishment for taking somebody's life. It's irresponsible to go across the lights like that."

Crump, of Charminster, Bournemouth, had been driving towards the railway crossing when he was egged on by his passengers to try to beat the descending barriers.

The Appeal Court heard he made a "snap decision" and diagonally crossed the railway line, ignoring the barriers and lights.

Nicholas Hilliard, for the Attorney General, argued Crump had been unaware of the presence of the crossing until one of his passengers said "quick, there's a crossing".

He argued Crump should have been jailed as he had "failed to notice or heed the warnings that would have been evident for some time before the crossing".

He had taken a "deliberate risk" while showing off to his passengers and the barrister argued Crump's offence was so serious it merited a two to five-year custodial sentence.