Newtown's mayor says butchers and fruit and veg shops could suffer

The grocery giant wants to develop a former livestock market in Newtown which it has bought on condition it receives planning permission.

The assembly government confirmed it was considering a request to call in the plans.

Tesco said it could create 300 jobs in Newtown, but there are fears the store could affect town shops.

There are also concerns increased traffic could have an impact on the already busy road network, although there have been calls for a town bypass.

Tesco said in June it planned to encourage linked trips with existing town centre shops and its supermarket.

'Conditionally sold'

It added that a vibrant Newtown would be good for business.

The Welsh assembly government confirmed it had received a request to call in the plans, but said did not know when a decision would be made.

Newtown mayor Elizabeth Sheriff said: "There are disadvantages and advantages to Tesco's plans.

"Butchers and fruit and veg shops could be affected, but then people who would otherwise not come to Newtown may visit the supermarket and then the town centre."

In April, Powys council, which owned Newtown livestock market, said it had "conditionally sold" it to Tesco.