The Lidl plans can now progress

Powys Council had been served with a "holding direction" which prevented it from granting consent for the Lidl store in Newtown.

The assembly government was considering whether to call in the application, but it has now said plans could progress.

A holding direction for a planned Tesco store in Newtown is still in force.

Powys Council said officials had given its planners permission to grant consent for the supermarket.

Earlier this month, the assembly government said it wanted to examine proposals for the supermarkets and added that it could call in both the Lidl and Tesco applications.

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

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

The holding direction means developments are suspended for an unspecified period.

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