Plans for a new supermarket in Oswestry have taken a “significant step forward” after officials agreed to sign a legal agreement which will ensure some benefits for the town.

Oswestry Town Council revealed today it had voted to sign the 106 agreement, which is tied to a planning application for a supermarket and mixed-use regeneration scheme at the Smithfield Livestock site in Shrewsbury Road.

The agreement has been created to ensure the town gets some benefits from the development getting the go-ahead.

The deal is between the developers, landowners and the town council, and includes proposals for a shuttle bus service between the site and the town, a park-and-ride scheme and new signs.

The town council, which owns the land, will gain about £6 million from the 106 agreement, which states it must only be spent on town centre initiatives.

Shropshire Council has also agreed to support the 106 document and is expected to sign it in the near future.

Simon Hoare, for the developers Liberty Mercian, said the scheme could bring jobs and investment into Oswestry.

He said: “We are delighted that Shropshire Council agreed the 106 agreement and that parties are now signing it including the town council. It is a significant step forward and very good news for Oswestry.

“We have moved another step closer to providing hundreds of jobs, make a significant investment with a supermarket and cinema and provide all the other elements.”

Mr Hoare said the next step for developers would be to start work on detailed plans for a 21st century livestock market. Assurances have been given that the livestock market continue to trade as work progresses.

He said: “In an increasingly competitive market place this is fantastic news for the local farmers and the users of the livestock business.

“It is crucial the livestock business continues to trade while the new facilities are being built.”

By Chrissy Symmons