THE £1bn construction of Europe's biggest business park in Warrington is being opposed by Liverpool Council because it fears the project could damage regeneration in the city.

The Highways Agency and Manchester Council are also objecting to the 7.4m sq ft Omega business park project, raising serious concerns over its future.

Work was due to begin at the end of this year but the opposition means it will now be delayed until 2005 at the earliest.

The development, which would encompass the former 500-acre US Army base at Burtonwood, could provide 6.9m sq ft of industrial and office space, with possible leisure and hotel facilities. But the project, which aims to create more than 24,000 jobs over 25 years, could also be subject to a public inquiry by the Office of the Deputy Prime Minister, based on the objections raised by Liverpool and Manchester.

A spokesman for Liverpool Council said: "The reason we have objected is because we don't think the development complies with the regional planning guide, which says that the priority areas for regeneration are central Liverpool and central Manchester and Salford.

"These priority areas will suffer if there is to be a major business park elsewhere in the region. We will now wait and see what happens after our objection to the planning application."

The Highways Agency has raised concerns that the nearby M62 could not handle the volume of traffic the park would generate.

Last night, a spokeswoman for Omega Warrington Limited, a joint venture between Miller Developments and The Royal Bank of Scotland, together with landowner English Partnerships, claimed speculation about whether the development will be called in was "premature".

She said: "The planning application was submitted on October 1 2003 following significant pre-consultation and public exhibition exercises which were extremely well received.

"Since the application's submission, supporting work and transport modelling has been ongoing through consultation on this and other issues, in conjunction with the Highways Agency, Warrington Borough Council and other associated bodies. The transport modelling work is being progressively signed-off by the Highways Agency and its consultants.

"This work is due to be completed towards the end of the year to enable Warrington Borough Council to fully consider the application in December 2004. Any decision will automatically be referred to the Secretary of State for a decision on whether to call in the application due to the planning context of the site.

"In the meantime, we have been working with neighbouring local authorities, including Liverpool and Manchester taking account of concerns expressed since the planning application was submitted.

"Omega is extremely important to the region, reflecting the Northwest Development Agency's (NWDA) Regional Economic Strategy and the Regional Planning Guidance Spatial Development Framework.

"The site also has a key role to play in the progression of the Northern Way which promotes greater inter-regional collaboration and will boost connectivity and transport links, thus increasing productivity in the three northern regions."

A spokesman for Manchester City Council said: "We objected to the original plans which we do not believe are sustainable, and are not a reflection of regional economic priorities."

"We are in discussion with English Partnerships on new proposals which we will consider and following consultation with members determine our response in due course."