The developers had sought to overturn a local authority decision to re-designate the former steelworks site a town centre because such a ruling would pave the way for massive development on the 1,151 acre site. Plans for the site include one million sf of retail; two million sf of business, industrial and storage space; and 3,500 homes on a 1,151-acre site.

The consortium behind the proposed development include Wilson Bowden, Corus and Scottish Enterprise Lanarkshire. Lead developer is US-based Mills Corp. from whom Ravenscraig represents their biggest scheme in the UK.

Both LandSec and Standard Life fear that development on this scale would "impact adversely" on their existing retail investments in Hamilton and East Kilbride. But Scotland's highest court, the Court of Session, held that the designation of Ravenscraig as a town centre in the local structure plan did not contravene national planning policy guidelines and was "not perverse or irrational".

Lord Kirkwood said: "It is clear that a structure plan looks to the future. It provides a long-term vision, looking forward at least 10 years, as part of an overview of the area's development requirements," Lord Kirkwood said. "I can see no valid reason, when there is a firm proposal for a new town centre at Ravenscraig within the time scale set out in the structure plan and the regeneration is regarded as a national priority, why steps should not be taken at this stage to safeguard the town centre for the future by its inclusion."

But LandSec and Standard Life argue that this ruling sets "a dangerous precedent" for future planning decisions. A joint statement says: "While we have always supported the regeneration of the Ravenscraig site, this was on the condition that it was on a scale which did not adversely affect existing retail developments in the surrounding area.

"The decision of many companies to invest in town centres has been made on the clear understanding that planning policy, at a national as well as local level, was designed to protect existing town centres. We believe that an alteration to the Structure Plan in this case is an abuse of the system and sets a dangerous precedent. This decision is not, in our opinion, in the best long-term interests of the people of Lanarkshire," the statement adds.

LandSec and Standard Life will not consider whether to appeal the ruling to the House of Lords.