Controversial plans for a £2 million pub and restaurant at Benfield Valley have been dropped.

In their place, Benfield Valley owner Steve Callow plans to convert an historic barn into a countryside centre.

There was strong opposition to plans by Bass to convert the barn, which lies close to the border of Hove and Portslade.

But now the businessman has told the brewers he will not proceed with the contract.

He has also dropped plans to build five houses on land nearby.

And he is offering five acres of land to hard-pressed Hove Park Lower School, which is short of playing field space.

Mr Callow, who lives in Lancing, took the surprise decision after meeting local Tory councillor Peter Willows.

He said: "Peter is the only person who has spoken to me. I have listened to what he said about what people want in the valley.

"I have had a sleepless night thinking about it but I don't see how people can object to this. I am giving them exactly what they want."

Under his new plan, the barn will contain a cafe, golf changing rooms and a Downs interpretation centre.

Mr Callow, who has a ten-year-old daughter, said: "I want as many children as possible to use this valley."

Coun Willows said: "Benfield Valley is the jewel in the crown of Brighton and Hove. I am backing the scheme 100 per cent."

Mr Callow also plans to restore four old cottages for housing and to renovate three other derelict listed buildings in the area which could also probably have residential uses.

If the Bass scheme had been approved Mr Callow would have been a rich man, but he said he was happy to come up with a scheme likely to be welcomed by the community.