Taylor Wimpey wanted to build 149 flats with 66 parking spaces and a GP's surgery on the site of the Royal Alex but the application was refused in December 2008 (see earlier story).

A subsequent four-day public inquiry in Brighton resulted in government inspector John Papworth dismissing the appeal and refusing to give Taylor Wimpey permission to demolish the buildings.

In his report he said the block of flats was too bulky, overbearing, too high and it encroached on the gardens in front of the hospital, which would have had an unacceptable impact on the conservation area.

Despite the Victorian building not being worthy of listing because of its many additions and deletions over the years, he said: “I do not discount the possibility of some retention of the south façade, as being the part most in the public view, which contributes the most to the area and which I consider could be seen as epitomising the children's hospital.”

Council officers in the Planning Department had recommended approval of the scheme and consequently the City Council appointed two consultants to represent them at the appeal - Jack Warshaw (dealing with architecture, design and conservation) and Mike Bleakley, former chief planner at Worthing (dealing with planning issues).