A businessman has accused Midlothian Council of failing to grasp a vital employment opportunity after it blocked his plans for a country-style retail development.

George Russell, who has run housebuilder Russell Construction since setting it up in 1976, won planning permission to develop a coffee shop and four holiday cottages on his Soutra Mains Farm in 2011.

Building work on the ­development, which lies off the A68 some 16 miles from Dalkeith, is complete, with Mr Russell's House of Soutra cafe opening for business in August.

But around four months ago, he submitted a change of use application.

His intention was to open retail outlets in the buildings instead of holiday accommodation.

Mr Russell, who has invested £500,000 in the project to date, cited the Scottish Government's support for a similar development at Fordel Mains, on the A68 Dalkeith bypass south east of ­Edinburgh, in his case.

The Fordel View project, which is bigger in scale and includes plans for a 90-bedroom hotel and restaurant in addition to shops, was eventually given the go-ahead by ministers after a drawn-out process.

It was first refused by the council and then the Government reporter owing to the complexity of the application, before developers Oakridge Property and Cranstoun Estates were finally granted permission.

Denny-based Mr Russell said his plans come as councils have supported the development of a host of destination retail projects across Scotland in recent years, most notably House of Bruar in Perthshire.

His said the outlets would specialise in local produce and antiques, and argues his proposal is consistent with moves encouraging farmers to diversify.

Crucially, he said his plans would bring a jobs boost to the area, claiming the four shops would employ 25 staff within three months of a positive planning outcome, such is the level of interest from potential tenants.

This would be in addition to the seven full-time staff already employed at the coffee shop.

But his application was refused by the council, which noted its responsibilty to support developments which meet national planning laws and guidance.

Mr Russell, who has secured 240 signatures on a petition supporting his plan, accused the council of passing up a chance to bring much-needed jobs to the area. He is now weighing up whether to appeal against the council's decision.

Mr Russell, who noted he had not applied for any public grants to support the project, said: "There will be no chance of employment if it is left to Midlothian Council planning staff.

"I hope the council sees sense and sees the benefits and employment opportunities [our plans present].

"We already employ seven full-time staff at the coffee shop just now. If the retail development goes ahead, there will be more employment."

A spokesman for Midlothian Council said: "We are in favour of job creation through sensitive development, and that is why we have approved previous proposals for House of Bruar style rural lifestyle destination developments.

"But we do have to work within national planning laws and guidance and were unable to assist Mr Russell with his development."

Mr Russell began his career in transport before setting up Russell Construction in 1976.

The company, which employs seven full-time trades people, typically builds houses in batches of 45, though it developed 70 in a recent project in Clackmannanshire.

Mr Russell owns several farms, including Airth Mains in Falkirk and Soutra Mains.