Plans for a new hotel and factory have suffered a major setback - the Environment Agency says it will oppose the scheme because of the risk of flooding.

Discovery Properties of London is seeking planning permission to build a 118-room hotel on land near the Tesco store off Marcham Road, Abingdon It also wants to put up new buildings to allow medical equipment manufacturer Penlon to re-locate from its premises in Radley Road.

But the proposals have brought protests from neighbours who fear that if building on the floodplain of the River Ock is allowed, the whole area would be at risk from flooding.

Now a public meeting will be held on Friday night at Caldecott Junior School, organised by local MP Dr Evan Harris. Also at the meeting will be representatives from Discovery Properties, the Environment Agency and Vale of White Horse District Council officers and councillors.

Only last week Discovery Properties announced a delay in its plans because of detailed talks with the Environment Agency on how best to re-route and deepen Stanford Brook so that the land could be taken out of the floodplain.

Dr Harris said he was not convinced about the comp- any's plans.

He said: "In the light of flooding we have seen in Oxfordshire and other parts of the country, developments such as these take on far more significance. I have made representations to the Environment Agency and I have been told that they will oppose this development."

Asked about the threat of Penlon to pull out of Abingdon and re-locate in Witney if it cannot move to new premises, Dr Harris replied: "I am not unsympathetic to Penlon because we need successful companies to stay in Abingdon but flooding is of very great concern to many people."

Dr Harris said he would be holding talks with the district council's economic development committee to examine other options in the town for firms seeking to re-locate.

Friday meeting starts at 6pm at Caldecott Junior School in Caldecott Road.