OBJECTORS to the HS2 national high-speed rail scheme - which would run close to a North Yorkshire village - say their fight is not over after their latest challenge to the plans was rejected by the Court of Appeal today.

Judges were asked to order further assessment of the scheme by 15 councils and other opponents, but all grounds of challenge were dismissed.

However, the anti-HS2 campaigners said the fact the three judges were split on the issue of whether a full strategic environmental assessment should have been carried out to assess the impact of the scheme and alternatives had given them hope.

Two of the judges - Lord Dyson, the Master of the Rolls, and Lord Justice Richards - supported the Department of Transport's argument that the assessment under a Eurodpean Directive was not required, but the third, Lord Justice Sullivan, disagreed.

The court gave the objectors permission to bring a further appeal on this issue before the Supreme Court, the highest court in the land, due to its public importance. They also allowed a further appeal over a second EU directive concerning an environmental impact assessment.

The proposed HS2 route would see a spur linking York to the route via the East Coast Main Line pass through the outskirts of Church Fenton, near Tadcaster, which would mean several properties facing demolition.

Hilary Wharf, director of the HS2AA campaign group, said: "It's a positive move and we are confident that, at the end of the day the Government are going to have to do a strategic environmental assessment and take their environmental obligations seriously."

However, High Speed Rail Minister Simon Burns said: "By dismissing all seven grounds of appeal and declining to refer the case to Europe, this is the second time in four months a court has rejected attempts to derail HS2.

"I urge opponents not to waste any more taxpayers' money on expensive litigation and instead work with us on making HS2 the very best it can be."