Fears over the potential loss of business from a historic town centre prompted a council to reject plans to convert a former health clinic into a flat.
Andrea Luccetti applied to South Norfolk Council to turn the ex-chiropractor practice in Brewery Lane, close to Market Street in Wymondham, into a two-bedroom flat.
The design and access statement said the ground floor business space, which has been empty for three years, would be converted under the plans.
But the council threw out the plans this month, saying: "By virtue of the proposal's removal of an employment use to replace with a residential dwelling without justification or prerequisite marketing exercise - and failure to demonstrate overriding benefits relating to the protection of employment sites - the proposal results in economic harm without justification."
Kevin Hurn, district and town councillor for Wymondham who represents the Conservatives, welcomed the decision and said: "The Green Dragon pub has recently closed and two banks are closing this year, in addition to other shops that have recently closed.
"We need to encourage new/small businesses into Wymondham and a unit such as this with close proximity to the town centre should be ideal for a small business or small trader.
"This application removes a unit that offers employment use with a residential dwelling, which potentially results in more economic harm for Wymondham without justification.
"There is no evidence that the site cannot continue to be used for employment.
"It contradicts current South Norfolk Council planning policy and is also located in a conservation area."
The applicant said minor changes would have been made to the windows of the proposed flat and it would have been accessed from the backyard.
There is a flat above the empty chiropractor practice which has been renovated and has people living in it.
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