Powys council is 'happy to co-operate' on the store plans

Powys Council has been served with a "holding direction" preventing it from granting consent for Lidl and Tesco stores in Newtown.

Officials at the assembly government said they wanted to examine proposals for the supermarkets and could call in the applications.

Powys Council said the applications had been dealt with in a fair manner.

Plans for a Tesco supermarket in Newtown have been under scrutiny since October, when the assembly government received a request to call in the application.

The holding direction means both developments have been suspended for an unspecified period.

'Transparent manner'

But a spokesman for the assembly government said officials hoped to "clarify" their intentions soon.

He added: "The Welsh assembly government has issued a direction to Powys council relating to the planning applications for the Lidl foodstore at Llanidloes Road, and the Tesco store at Pool Road.

"The direction means that the local planning authority cannot grant planning consent for these developments.

"This allows the assembly to consider whether to call in one or both of the applications for determination. We hope to clarify our intentions as soon as possible."

Powys council's head of planning services, Gareth Thomas, said retail developments could be a source of controversy.

"We have taken great care to establish a proper planning policy approach to retail development based on the needs of the area over the next decade.

"We are satisfied that the applications have been dealt with in an open, fair and transparent manner and are happy to co-operate with the assembly."

Tesco wants to develop a former livestock market, which it has bought from the council, on condition it receives planning permission.