Tesco's plan back in the melting pot

Apr 5 2008 by Brian Daniel, The Journal

COMMUNITIES Secretary Hazel Blears has agreed to look again at her decision to allow Tesco to open a store in a Northumberland town, following an appeal from a rival.

The supermarket chain was given permission to set up shop in Berwick in January following a public inquiry.

But the Co-op appealed against the approval, wanting the inquiry to be re-opened to consider information it argued had not been taken into account.

It is understood this relates to the opening of a Marks & Spencer food store in Tweedmouth last September, which was not known about at the time of the hearing. Now Ms Blears has agreed to reconsider the approval.

It is understood she is considering either re-opening the inquiry or appointing an inspector to explore the issue involved and report back to her.

Either way, the decision to reconsider will substantially delay Tesco’s plans to start work on its store, with no progress expected until autumn.

The Co-op had appeared at the inquiry to voice its fears over the impact new retail development would have on its stores throughout north Northumberland and Berwickshire.

A spokesman for Tesco confirmed the company was aware of the Secretary of State’s decision, but declined to comment further given the judicial review.

He said: “We just have to work with it as best we possibly can.”

Berwick Civic Society opposed the Tesco application at the inquiry.

It raised concerns that the chain envisaged its store having a turnover of £20m a year, despite the inspector saying there was only capacity in the local economy for food retailing of £14m to £17m.

Chairman Alison Cowe yesterday expressed her satisfaction that the Secretary of State is to revisit her decision. She said: “Obviously we are pleased because we were concerned at how the figures were not stacking up at the inquiry and the effect of Marks & Spencer would seem to put a big dent on the figures for available spend for the new store.”

Tesco was originally granted planning permission by Berwick Borough Council to open a store, with petrol station, close to the Tweedside trading estate, in 2005.

The decision was then called in for a public inquiry which was held from October 2006 to early 2007.

At the same inquiry, the inspector considered a bid from Morrisons to extend its North Road store by 50% and demolish and replace its existing petrol station. An application for a retail park was also heard alongside two other proposed shopping complexes, one of them on North Road.

In January it was announced that Tesco’s permission had been upheld while the applications from Morrisons and the retail park on North Road were also approved.

The other shopping complex applications were turned down.