The fate of a controversial plan for 800 homes on green belt land near a Shropshire village will be decided by Housing Secretary Angela Rayner in a case campaigners say could test Labour’s planning reforms.

A 12-day appeal is underway into whether Boningale Homes should be allowed to build the estate south of Albrighton after Shropshire Council rejected the application.

Instead of being determined by the planning inspector overseeing the appeal, the government told the council on Wednesday that Rayner would make the final decision.

A letter sent on her behalf said the appeal raised “important or novel issues” and involved “significant development in the green belt”.

The case centres on land off Patshull Road, which Boningale Homes argues should be considered “grey belt” rather than green belt.

Under planning reforms introduced by Sir Keir Starmer’s Labour government, some lower-quality or underused green belt sites could be released for development to help boost housebuilding.

The government is aiming to build 1.5 million homes in England by the next election, although ministers have acknowledged the target will be difficult to achieve.

Speaking on the BBC’s Sunday with Laura Kuenssberg programme, Rayner said there was only a “slim chance” of meeting it by 2029.

Campaigners opposed to the development said they had long argued the appeal was of national importance because of what it could mean for future green belt decisions elsewhere in England.

The Albrighton Development Action Group (ADAG) described it as “the biggest test case of its type to date”.

“If we are successful, then we will give confidence to hundreds of places across the country that their vital open spaces and productive farmland can be protected for their children now and for the generations to come,” a spokesperson said.

The group said it remained confident that both the planning inspector and Rayner would dismiss the appeal.

It argued the site remained “productive farmland and core green belt” and should continue to be protected from development.

The area’s Conservative MP, Mark Pritchard, criticised the government’s intervention, describing it as “chillingly egregious”.

“It is in many ways ideologically driven, which is possibly one of the most worrying things of all,” he said.

“Who knows, she might pleasantly surprise me, but I’m afraid her track record [for building homes] is not boding well for Shropshire.”

Boningale Homes declined to comment while the appeal hearing is ongoing.

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