THE path for a new Asda store in Lydney has been cleared after a legal challenge by Tesco to the scheme was dismissed.

Tesco went to the Court of Appeal after its claim for a judicial review of the grant of planning permission for an Asda store on the Federal Mogul site near Cambourne Place was rejected.

That appeal has now been rejected leaving the way open for the site to be developed.

Tesco had argued that the Forest of Dean District Council had been wrong to grant permission because it could not be certain that measures to limit the impact of the new store on Lydney town centre would be sufficient.

An agreement with Asda will provide a shuttle bus service between the new store and Lydney town centre and £380,000 to provide town centre management advice, town centre improvements, a market square, additional CCTV camera coverage, and shop front improvement grants in the town centre.

Members of the planning committee had also placed a great deal of weight on the fact that the new store would secure existing jobs at the town's biggest employer, JD Norman.

In dismissing the appeal, Lord Justice Sullivan agreed with the argument from developers Windmill that these were matters of planning judgement and councillors did not need to have the specifics of the agreement to make a decision.

He also described advice from planning officers as "impeccable".

In its skeleton argument, Tesco referred to successful appeals against Asda by the Co-op in Cinderford but that line was not pursued in the hearing.

Justice Sullivan said the circumstances between the cases in Lydney and Cinderford were "materially different".

Cllr Patrick Molyneux Leader of the Forest of Dean District Council and Cabinet Member for Governance, Regeneration and Planning Policy said: "We are pleased with the Appeal Court judgment.

"We were particularly pleased that the judgment noted that the advice given by officers to members at the planning committee meeting prior to the decision to grant permission was 'impeccable', and that this allowed members to make an informed decision by exercising their planning judgement. This had a positive influence on the judge's decision."

"The development of this new superstore in Lydney will not only provide new jobs, but will also secure the future of JD Norman in the district and therefore safeguard good quality employment."