Labour accuse Tories of 'spite' over Newport store battle

Labour councillors said that the Tories were so hurt by losing the local elections in 2011 that they launched a campaign against the supermarket in Station Road to undermine their political opponents.

The council is set for a £21 million windfall in land sales if the store goes ahead.

The Conservatives called a rare extraordinary council meeting to debate the Newport supermarket saga, which took place last night at Telford College of Arts and Technology.

The Tories called for an apology from Labour leader Kuldip Sahota over the money the local authority has "wasted" in promoting a Sainsbury's while at the same time fighting a rival bid for a Morrisons in Audley Avenue through the courts.

Conservative leader Councillor Andrew Eade said the debacle had called into question Labour's "competence to run the council".

But Labour Councillor Arnold England said: "This is not about supermarkets or green fields. It's about damaging the council and its ability to provide services so that they can crow about us having to make cuts."

Councillor Richard Overton added: "Councillor Eade has done nothing to help us to get proper funding and then out of spite sought to harm our finances."

The council has lost two court appeals against the Morrisons – spending hundreds of thousands of pounds in the process – and yesterday ruled out any further legal action.

But the local authority is still considering what to do about its plans for a Sainsbury's.

Retail experts say that there is only room for one large supermarket in Newport.

Councillor Kuldip Sahota, council leader, said: "We will make a decision when we are ready and when we do it will be in the interests of all the taxpayers of Telford and Wrekin."

In total the council has paid around £1.4 million on all supermarket applications in Newport.

Labour insists that it was the right thing to try and realise the cash from its Station Road asset.

Councillor Bill McClements said that if the council does not get its land sale money then it would affect the budget by "£1.2 million to £1.5 million each year for the next 40 years".

Labour was keen to emphasise that the Conservatives entered into talks about a supermarket on the land shortly before being voted out in 2011.

Councillor Eade said this was true but insisted that consultation would have taken place with residents first – and that money would have been used to rebuild Burton Borough School.

He said: "Why can't Labour stand up and admit there have been mistakes rather than making personal attacks?

Councillor Eade's motion to "end the hypermarket debacle" was defeated 29 votes to 17, with two abstentions.