A TOWN centre development may never get off the ground after an application to expand an out-of-town complex was approved, it was said yesterday.

Developer Gentoo has been granted permission to build shops and restaurants on the site of the former bus depot in North Bondgate, Bishop Auckland.

However, the company believes businesses will shun the project in favour of the Bishop Auckland Shopping Park, in St Helen Auckland, which also received permission for four extra units.

In a meeting of Durham County Council’s county planning committee yesterday, councillors were told that interested businesses were waiting to see the outcome of both applications before making a commitment.

Stewart Allen, of Gentoo, said: “I am delighted, but not surprised, that Gentoo’s scheme received planning consent. I am, however, a little dismayed that the planning committee also approved the out-of-town scheme which is in direct conflict with the town centre site.”

The expansion to the out-oftown site has divided opinion in the town, and planning officers recommended the application should be refused on the grounds it “would have an adverse impact on the vitality and viability of Bishop Auckland town centre”.

Councillors went against the planning officer’s recommendation to refuse the outof- town expansion application.

Mayor of Bishop Auckland Councillor Charlie Kay said he was disappointed with the outcome, but was determined to continue to fight for the future of the town centre.

He said: “We need to regroup and have a rethink.

“We have to go forward and secure a future for the town centre. As I have said before, doing nothing is not an option.

“Town centres across the country are struggling with the very difficult economic climate and Bishop Auckland is no exception. The last thing they need at this moment is the further expansion of outof- town retail.”

County councillor for Bishop Auckland Neil Harrison called the approval of the outof- town scheme a scandal, saying it would be detrimental to the town centre.

However, county councillors for St Helen Auckland, Andy Turner and Rob Yorke, said both projects would be a big boost to the area creating jobs and attracting shoppers.

Coun Yorke said: “I am delighted both schemes were approved, and I really hope Gentoo carry on with their commitment to the Bondgate site. We all have to work together to make Bishop Auckland sparkle again, and there are enough retailers to fill both sites.”

Speaking after the meeting, Chris Wade, chief executive of campaign group Action for Market Towns, said: “Councils across the country need to have confidence to stand up to inappropriate out-of-town planning proposals and seek sites that fit within the fabric and current retail offer of towns.”

Richard Wilks, of Metric Properties, which is developing the St Helen Auckland site, said: “Our research shows us the impact will not be on Bishop Auckland town centre, but on other retail centres like Darlington and the MetroCentre.”