Plans for a multi-million pound supermarket in Powys have been given the final seal of approval.

Up to 340 jobs are set to be created in Newtown after the Welsh Assembly Government has given the green light to plans for a new supermarket and petrol station in the town.

Members of Powys County Council’s planning committee had granted the application permission at a meeting in October, subject to the Welsh Assembly’s agreement.

John Evans, council communications manager, said the Assembly had informed the authority it was now happy with the application.

He said: “When the planning committee granted permission in October, it was subject to the Assembly’s agreement.

“They have now informed us they are happy with the application and it is now up to Tesco to sort out any legal matters and they can get on with building the new store.”

The supermarket will be located on the old Smithfield market in the town, which is off the main A483 Pool Road.

Before the meeting in October, the plans had been on hold with the Welsh Assembly Government for 18 months, with the Assembly objecting to the traffic scheme originally planned for the development, due to its close proximity to the A483 Pool Road.

But Tesco submitted new plans which included a new system of traffic lights instead of a roundabout.

Aaron Hughes, Tesco spokesman, said: “The highways issue is a key one and we have worked hard with the Assembly and council, as well as our own engineers, to form the best plan.”

An Assembly spokesman said: “It was decided the application should not be called in for determination by the Welsh Ministers and it is now for the council to determine the application.”

Mr Evans said: “They have sent the application back to us and as the committee has already been granted planning permission, Tesco has been given the final seal of approval.”

Councillor Richard White, member for Newtown East, said: “I am in complete support for a Tesco store to come to Newtown and think it will be a great move for the town.

“It will bring more people to the town to shop in general as well as providing some competition for other supermarkets in the town.”

By Andrew Morris