A senior government minister has been accused of 'utter, utter hypocrisy' by an MP after overturning a major Teignbridge planning decision just days before announcing a new government policy to strengthen local democracy.

Residents are 'absolutely livid' about secretary of state for communities and local affairs Ruth Kelly's decision to approve 200 homes in fields off Reynell Road after the plan had been rejected by both Teignbridge Council and the planning inspectorate.

She said if the developer, Redrow Homes (West Country), can prove its plans for affordable homes within the scheme are genuine it can press ahead despite 139 objections. Miss Kelly said low-cost homes took priority over the environment in the Ogwell case and announced her decision on Thursday last week. On Tuesday, she set out her 'agenda for devolution'.

Cllr Alan Joint, chairman of Ogwell Parish Council, said residents had been left incensed by the decision. 'We had a meeting on Monday night and they are up in arms, absolutely livid. It completely beggars belief,' he said.

'We can't understand why this bit of land, which was never included in local development plans, suddenly comes up and is considered suitable for housing. 'But what's most annoying is the fact that Ruth Kelly stands up and says she wants more local democracy and then goes and overturns a local decision that was made not once, but twice.'

Cllr Joint said villagers would stage further meetings and were considering protests. Totnes MP Anthony Steen MP, who is responsible for most of the parish, weighed in with undisguised anger. 'There is utter, utter hypocrisy within the government, on the one hand they say this and then on the other hand they do that,' he said.

'What's more, this whole thing about sustainability doesn't mean anything. 'For houses to be affordable it means that others have to be even more expensive, it's the only way they can make it pay. 'That's not sustainability and it means quality of life will go.' Although he had sympathy for the Ogwell residents, Mr Steen said he was powerless at this stage of the planning process. 'There's nothing more I can do that would change Miss Kelly's mind,' he said. Teignbridge Council has said it will respond formally once it knows the details of Redrow's revised plans in the light of Miss Kelly's decision.