A controversial complex of shops and offices designed to smarten the heart of Brighton has been dropped for being too ugly.

The decision could leave the site opposite the Clock Tower with a gaping hole in the front corner of a planned new building for months, if not years.

Developer Wildmoor believed its design for shops and offices on the island site at North Street Quadrant and Air Street would create a landmark contemporary building with classical overtones.

However, Brighton and Hove City Council's planning committee rejected it on the grounds it was ugly and out of scale and character for the area.

Janet Turner, who represents disabled people on the planning committee, said: "It is a mishmash that could have been designed by a child of five."

Tory councillor Carol Theobald said: "It is a poor substitute for the Victorian buildings which were on the site."

She did not like the blue colour of the planned buildings and described them as "a great disappointment for the city".

Liberal Democrat councillor David Watkins said: "The Clock Tower has stood the test of time but this building will not."

Labour councillor Delia Forester said the design was monolithic and she would rather the shop frontages had been divided.

The committee voted by eight votes to four to reject the plans for the island site.

It could mean Wildmoor would only be allowed to build one side of the development, leaving a hole on the corner facing the Clock Tower.

Construction work has already started on the site but Wildmoor now has to consider if it will launch an appeal to Deputy Prime Minister John Prescott.

That could delay work to complete the final corner of the development for more than a year.

The Louis De Soissons Partnership, which drew up the plans on behalf of Wildmoor, said it was furious at the council's decision.

Russell Long, a company partner, said the firm would be willing to fight the council. He was annoyed councillors ignored the advice of their planning officers, who firmly backed the scheme.

The committee's decision was based on anger that the original Victorian architecture had been knocked down since work started, despite being in the original planning application.

Mr Long said: "The new design is a contemporary building with classical overtones and we think is right for the area. We think it is beautiful but design is always a matter of opinion. Naturally we are disappointed. It is very unusual for us to get an application refused and we are prepared to appeal."

The Quadrant's redevelopment has sparked controversy since the site was sold to Wildmoor four years ago.

Many people said they were appalled historic Regency buildings would be knocked down to make way for a modern building and some called for the council to at least keep the facade of the old buildings.

Planning permission was granted to Wildmoor for redevelopment of the site with shops and offices in August last year.