Residents and politicians are furious after the Government gave the go-ahead for a controversial scheme for 1,350 new homes to be built in two tiny parishes.

There are fears areas will lose their identities after plans to build 650 homes at North Bersted and 700 at Felpham, both near Bognor, were given the green light.

Ruth Kelly, the Communities and Local Government Minister, has granted planning permission for the scheme - which is estimated to cost about £70 million - after a lengthy legal battle, including two public inquiries.

It is one of a series of announcements expected this year confirming the exact locations of massive housebuilding projects in Sussex.

Opponents argue it will send the county's infrastructure into meltdown as already congested roads become gridlocked and resources are stretched to breaking point.

The first diggers could move into Felpham and North Bersted by the end of the year, according to leading figures at Arun District Council.

There are 4,875 residents in Felpham and 8,443 in Bersted, according to the 2001 census - a total of 13,318 people.

Bognor MP Nick Gibb condemned the Government for allowing the scheme to go ahead, saying it was "illogical" and that the area would struggle to cope with so many extra residents.

The Conservative MP said: "We've already had massive housebuilding in and around Bognor in the last 30 years.

"The Government doesn't come down to look at these sites and realise that the areas cannot cope.

"It is incredibly disappointing that Ruth Kelly is following in the footsteps of John Prescott and is continuing to force Government-prescribed housebuilding targets on us.

"I am totally opposed to these central targets, especially when the ministers don't take the time to come and view the sites for themselves."

Local councillor Sylvia Olliver condemned the decision as "dreadful".

She said: "We are going to get to a stage when there won't be any fields left in the South.

"They're building concrete on top of us and all our lovely countryside is going to disappear if they continue.

"I really think the South is going to be inundated with houses and it is already starting at North Bersted. Our family silver is being sold off for profit."

The Government's South East Plan, published at the end of March, details its demands for almost 29,000 new homes to be built per year between now and 2026. But with most of the South already facing strict hosepipe bans and roads such as the A27 severely congested, many people believe the idea of house building on such a scale is unsustainable.

Large demonstrations took place in opposition to the building at North Bersted, which will be on land commonly known as Site Six. Similar demonstrations have also taken place to proposed schemes in Worthing and Brighton.

A spokesman for Bersted Opposed to Site Six, the campaign group which has organised demos around Bognor, said: "This plan is unsustainable and the Government targets across the South are unsustainable.

"We will be swamped with traffic and be left without the infrastructure to cope."

The incoming leader of Arun District Council, Gill Brown, said there were clear advantages to the development, particularly for those wanting affordable homes. But she admitted many residents would be angry.

She said: "I realise some residents of Bersted and Felpham will not welcome these proposals since they will bring disruption and change.

"I can assure you I will be working with the developers, the county council and the two parish councils to achieve the greatest possible integration and cohesion of new construction with existing properties."

Along with giving the go-ahead to the house building in North Bersted, the Government also gave planning permission for a relief road from Elmbridge to Flansham. There are also plans to build a road to Oldlands Farm in North Bersted which has been earmarked to be turned into a business park.