A LEADING borough councillor says residents must be consulted on the future of land that had been earmarked for a new supermarket.

Tesco shelved its controversial plan to build a new supermarket in Basingstoke at the end of last week, blaming its “business performance” for pulling out of 49 planned new stores across the country, including one on the former Smiths Industries site in The Harrow Way.

The company has said it will work with Basingstoke and Deane Borough Council “to find the right solution for the local community”.

But Councillor Paul Harvey, deputy leader of the borough’s Labour group and the party’s prospective parliamentary candidate for Basingstoke, said the supermarket should include residents and local councillors in discussions as to what it does next with its land.

He said: “While it is good that Tesco wants to talk to the council, the community and local councillors need to be involved too. I want to see proper engagement, proper consultation to shape what happens on that site.”

The latest plan had involved a new supermarket, creating 200 full or part-time jobs, 344 car parking spaces and 48 new homes.

It was submitted in November last year and was put forward after the Planning Inspector-ate rejected Tesco’s appeal against the borough’s refusal of its plan for a far larger store on the site.

The supermarket giant bought the eight acres of empty land from Smiths Industries for £16million in 2008.

Smiths had previously secured planning permission for retail warehousing on the site, with a view to B&Q operating there.

Tesco’s plans had been opposed by some residents and local shop owners, who feared the impact of a new supermarket on their business.

Reacting to Tesco’s U-turn on the site, Mark Buttress, who runs the Jaybee’s store, in King’s Furlong Drive, King’s Furlong, told The Gazette: “It’s good news – the best New Year’s present that I have had. I dread to think how many millions of pounds Tesco have spent on this project. Where the store was to be sited was never feasible.”

Basingstoke MP Maria Miller said it is up to Tesco as to what it does with its land.

She told The Gazette: “My concern is that we need to find a solution to congestion problems at Brighton Hill Roundabout before any further development takes place.”

In a statement about the proposed Basingstoke store, Dave Lewis, chief executive officer at the supermarket chain, said: “I know that this news will be a real disappointment to many people in the local community, and we’re extremely grateful for the support we’ve received for our plans.

“I am very aware of the importance of the site to the area, and I am determined that we will work closely with the council to find the right solution for the local community.”

As well as pulling plans for new stores in the UK, Tesco also announced last week that it will close 43 existing sites, thought to be Tesco Express stores.