Chris Jackson, who owns Jackson's Butchers in Low Street, refutes council allegations his refusal to sign an agreement to allow work on his land blocked the £1.4 million project.

The 67-year-old said: "I've been bullied and misrepresented by the council in the press. Deputy council leader Coun Brian Percival wrote me a hand written letter saying I could keep ownership of land near my shop and give developers permission to work on it.

"This was made into a legally binding document by my solicitor. However, just before the deadline for signing, my solicitor said 'don't sign' as the council now wants you to surrender the land to them. I wasn't prepared to do this and the deal was off.

"This land provides the only access to the back of my shop, and if the council owned it, it could stop me using it in future. I feel I'm being used as a scapegoat for the scheme's failure."

Former Sherburn Parish Council chairman Malcolm Dowson (pictured, right, with Mr Jackson) agreed with Mr Jackson. "I don't believe Chris is to blame for the scheme's failure," he said.

"As the time for work to start got nearer, people were put under pressure, and when funding was withdrawn, I wasn't surprised – done deal sprang to mind.

"I'm sure the district council and NYCC could have agreed something with Mr Jackson long before the deadline."

But SDC deputy leader Coun Brian Percival retorted: "Mr Jackson was always going to have total rights of access, and I would defend that right forever.

"There were proposals to protect him. I felt it important to retain his right of access to his land and shop.

"I tried up until the last minute to negotiate a deal. I'm still convinced a deal can be struck and work can begin in 2011."