The secretary of state for communities and local government, Ruth Kelly, has announced that she will be calling in the planning application for the SnOasis project in Suffolk and subjecting it to a public enquiry.

The scheme, which would cost more than £300m, features the world’s largest indoor ski-slope at the heart of a year-round leisure resort.

Kelly said that further information was needed on the project and also cited local concerns, such as an increase in traffic, as reasons for the decision.

Godfrey Spanner, managing director of Onslow Suffolk, the company behind SnOasis, said: “This is a very disappointing outcome. I am surprised by the secretary of state’s comments that SnOasis ‘gives rise to substantial regional controversy’. Nothing could be further from the truth.

“SnOasis was backed by thousands of people from across the region and also has the backing of Ipswich Borough Council, Suffolk County Council and Somersham and Nettlestead Parish Councils as well as national bodies such as the British Olympic Association, VisitBritain and Snowsport GB.”

Spanner fears that the enquiry will add a further £1m to the costs and delay the opening by at least a year, from 2010 to 2011. Details: www.snoasis.co.uk