The company behind a planning application for a controversial recycling plant has gone into administration.

Carshalton-based HS Works was granted permission for a road excavation recycling centre in Beddington Lane after a planning inquiry at the end of last year.

The company has now been taken over by three subsidiary companies – HS Water, HS Gas and HS Civils – and the recycling plant will still go ahead.

Since the takeover 17 employees have been made redundant, but a spokesman insisted the redundancies were not a direct result of HS Works going into administration.

About 50 defiant residents protesting the plans turned up for the inquiry last night, despite there being little chance the application would be thrown out.

Councillors were forced to backtrack on a development control committee decision to reject the plans after legal advice revealed behind closed doors highlighted a lack of evidence to support reasons for the refusal on the grounds of noise and air pollution.

Despite the councillors’ u-turn, the inquiry at Wallington’s Trinity Centre was not cancelled, and could cost taxpayers £8,000. Previously, council officers recommended the application for approval.