Plans for a new prison on the site of the former Runwell Hospital have been submitted to Chelmsford Borough Council by the Ministry of Justice.

The proposed 1,500-place prison at Runwell should create more than 800 new jobs and generate approximately £17.1 million in annual revenue for the local economy if it gets the go-ahead.

The submission of the outline planning application comes after a public consultation into the prison-building proposals for the Runwell site.

Residents in Wickford and Runwell were invited to a series of public meetings and exhibitions in November 2009 to submit their views on the proposed prison. Those views were fed into the outline application submitted by the Ministry of Justice.

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The outline application comes after Secretary of State for Justice, Jack Straw, announced proposals last April to secure sites for two new 1,500 place prisons – including one on the site of the former Runwell Secure Psychiatric Hospital in Essex.

Justice Minister Maria Eagle said: "This represents a significant milestone in the planning for a new prison at Runwell.

"We believe a major development like a prison at Runwell would boost the economy and provide jobs for local people.

"But of equal importance is the fact this is another opportunity for residents near the proposed prison to have their views heard – not only by the Ministry of Justice, but by the planning authority who will have the final say on this application."

The prison will be run by a private sector company. Currently there are 11 private prisons in England and Wales. Independent assessments have confirmed that private sector prisons provide good security, high regime standards and modern conditions.

(CD/GK)