The famous gasholders that have dominated the Oval since the ground staged the first home Test match between England and Australia in 1880 are threatening to scupper a £40 million development aimed at providing some of the best facilities in world cricket.

Surrey believed that they had permission to begin the redevelopment of the Pavilion End this winter, incorporating a four-star, 170-room hotel, a new stand that would raise the capacity from 23,500 to 25,000 and an elegant piazza, opening up the main entrance to the ground, with a view to completing the work in time for the final Ashes Test in 2009.

However, the Health and Safety Executive has raised an objection with Lambeth Borough Council on the ground that the gasholders - once said to be “as famous in cricket scenery as the Worcester Cathedral or the Canterbury tree, or even Father Time himself at Lord’s” – constitute a hazard.

It has come as a shock to Surrey, who believe that the redevelopment is crucial to the Brit Oval’s future as an international ground. They had followed proper procedures, going through lengthy consultations with council officials and local residents’ groups, staging public exhibitions in February and July to outline their proposals and getting the approval of the Prince of Wales and the Duchy of Cornwall, their landlords.

No one mentioned the gasholders, which have overlooked FA Cup Finals, ice skating, pop concerts and, traditionally, the final Test match of every Ashes series, as being considered a threat to anybody.

The surrounding streets have always been in their shadow. There are three schools and a superstore nearby and there were no objections when the £25 million OCS Stand was built in 2005 at the Vauxhall End, which is closer to the gasholders than the Pavilion End.

What is more, there is no record of a gasholder exploding.

“This is not something that we were expecting, but we are very confident that we will be able to resubmit our planning application in the near future and that Lambeth council will allow the development to go ahead,” Paul Sheldon, the Surrey chief executive, said.