Norfolk council launches inquiry into Tesco 'agreement'

North Norfolk District Council has launched an urgent internal inquiry about a legal agreement which tied its hands over a plan for a Tesco store in Sheringham.

The existence of this agreement, signed in 2003 between the retail giant and former members of the council, only came to light when the council recently voted 10 to two to drop their earlier opposition to a Tesco store on a site at Cromer Road.

The agreement boosts Tesco's battle to get approval for a store in the Norfolk town. It prevents the council promoting any of its own land for rival supermarkets. The emergence of the agreement has prompted claims of secret deals and bullying by the retail giant.

The agreement was a key factor in legal advice to the council that they would face a problem defending their earlier objection to the Tesco scheme, now the subject of an appeal for non-determination.

The council had originally objected to the Tesco's proposal on road safety and traffic management grounds, as well as the claimed adverse effect on the town's shopping provision.

An alternative site owned by the council closer to the town centre had been considered more acceptable for development, and supermarket rivals Budgens had been granted planning permission. However this scheme had floundered because of the lack of a land deal with the council.

A Tesco's spokesperson denied claims there was anything sinister about the deal or that it had "bullied" council members.

"We have consulted widely on the scheme in the Sheringham area and have acted completely properly throughout. A legal agreement between Tesco's and North Norfolk District Council does exist. It precludes the council from promoting an alternative council-owned site for supermarket development but doesn't prevent the council granting planning permission to other retail developments on non-council land," explained the spokesperson.

Such agreements were "routine" in the circumstances and were not secret. The agreement did contain a confidentiality clause relating to the release of commercial details of the deal.

"This is completely normal in these sorts of property deals," added the spokesperson.

Tesco's is now planning to submit a revised application for a store on the Cromer Road site "in the near future".

Council leader Simon Partridge said the investigation would include why the agreement document "was not made available to members earlier".

Roger Milne

4 May 2006