Racecourse management were notified by their lawyers on Wednesday morning that the planning application had been refused, on the recommendation of the Reporter who conducted a public inquiry in the town in February.

The controversial development was approved by East Lothian Council last year, amid strong local opposition, and was subsequently called in by Scottish Ministers for their determination.

Reacting to the news, racecourse general manager Bill Farnsworth said: "Naturally, we are extremely disappointed and believed that we had put forward a first-class case for all-weather racing which would have benefited not just Musselburgh, but the whole of the Scottish racing industry.

Concerned

"We have not yet seen the report and until we do, and have time to review the findings, it would be inappropriate to make any further comment."

The decision will be welcomed by the Hands Off Our Links action group and other objectors, who were concerned about the impact of the development on the town and the neighbouring Old Links golf course.

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