Plans to build 40 homes at the Pankhurst trading estate in Littleham have been withdrawn.
The plan for the homes, and eight business units, on the site of an engineering and fish processing facility, was due to be considered by East Devon District Council at a planning meeting next week.
However, days before the plan was due to be considered, the applicant has decided to withdraw it.
Ahead of the meeting, EDDC planning officers had recommended the scheme for refusal, saying it was not good enough to justify using designated employment land for housing.
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