Campaigners have lost a High Court battle to prevent an asylum centre being built in their area.

Mr Justice Collins ruled on Tuesday that the deputy prime minister was right to grant planning permission for the new centre, which will house up to 750 asylum seekers while their applications are processed.

The local authority, Cherwell District Council, argued that John Prescott had ignored the findings of a public inquiry in making his decision.

Mr Justice Collins' ruling was welcomed by newly-appointed immigration minister Des Browne.

"The trial of accommodation centres is an essential part of our reforms to overhaul the asylum system and there is an urgent need to get them up and running as quickly as possible," he said.

"The planning process has added considerable time to the programme but nevertheless, we have always committed to abiding by it.

"The centres will help us set up an end-to-end system allowing us to quickly process asylum claims while keeping in better contact with asylum seekers and removing those whose claims fail.

"At present inner city dispersal areas take on virtually all responsibility for asylum seekers and it is only fair that all parts of the country share responsibility.

"The centres will be largely self-sufficient, with health and education facilities on site and should not be seen as detrimental to the local community.

"I hope that the local community will work with us as we develop our plans in Bicester and drive forward with our reforms to create an asylum system that all people can have trust and confidence in."