TRADERS in East Oxford last night said they feared a plan to build student blocks on St Clement’s car park was “a done deal” after contractors started working on the site.

Diggers moved in on Monday, but Oxford City Council insists that was normal practice to find out if there were any significant archaeological remains, and no decision had yet been made.

The developer, Watkin Jones Group, wants to build three accommodation blocks housing 141 students on the car park.

Only 76 of the 120 car parking spaces will remain if the £8m scheme is completed.

Traders in St Clement’s and the surrounding area say their businesses could close if the scheme is approved by the city council because the car park would be closed for 11 months.

Clinton Pugh, who runs Kazbar, Café Coco and Café Tarifa in Cowley Road, said traders were astounded to see diggers start work.

He said: “I think it’s wrong when the planning committee will not make their decision until July. This looks terrible – it looks like a deal has already been done. Even if that is not the case, that is what it looks like, and developers should have waited until councillors made their decision.

“When I spoke to one of the workers he said the car park would be closing soon so that student accommodation can be built.

“I have canvassed traders in High Street, Turl Street and St Clement’s and 49 businesses said they did not want this to go ahead, in addition to those in Cowley Road.”

Mr Pugh said work being carried out had taken up more than 30 parking spaces next to the entrance to Angel Meadow.

“If my income is reduced by 10 per cent because the car park is closed then my businesses could go bust,” he added.

Alan Grosvenor, 45, who runs Sevenoaks Sound & Vision hi-fi shop in St Clements, added: “There isn’t a single retailer around here or resident who wants this to go ahead.”

Colin Cook, executive member for city development, said diggers moving in didn’t mean work was set to go ahead.

He said: “The application is expected to be considered by the West area planning committee in July and no decision has yet been made.”

Paul Gillespie, project manager at Watkin Jones Group, said the site has been fenced off to ensure that cars in neighbouring spaces were not damaged.

He confirmed the contractors had paid a £356,000 non-returnable deposit to the council as 10 per cent of the leasehold price for the land.

He said: “The deposit is evidence of our commitment to the proposal, it is not designed to influence councillors in any way.

“There is no done deal and councillors will have to consider the planning application on its merits.”

In March, developers revised their plans so that the three blocks will be built further away from Alan Bullock Close.

They made the change after Oxford University raised concerns about the impact on existing student accommodation in the road.

In 2005, the council agreed to allow the car park to be developed for student accommodation in its Local Plan, which maps out future development.