SUPERMARKET giant Tesco have shelved controversial plans to convert a village pub into a new store – less than two months after winning a battle to get planning permission.

The retailer will no longer press ahead with a proposal to extend the Squirrel Inn pub, in Areley Kings, near Stourport and open an Express store in its place because of doubts on its financial viability.

Tesco had acquired the lease for the Squirrel from Punch Taverns but the future of the site is now up in the air with the pub now closed and the windows boarded up.

Campaign group Areley Kings First, which had battled against the proposal because of concerns about the effect the store would have on traffic, pollution and the quality of life for residents, has welcomed the news.

Wyre Forest District Council’s planning committee had originally turned down the proposal, prompting the firm to lodge an appeal with the planning inspectorate.

Despite the strong public protests to the plans, Inspector Jenny Vyse found in favour of the company in January.

Steve Rigby, Tesco’s chief property officer, said: “We will not operate an Express Store or a One Stop at the Squirrel Inn. There were many reasons for this decision, including revised forecast return on the investment.

“I hope this decision is welcome news to members of Areley Kings First but I am conscious that the news will be met with disappointment by those who supported our plans.

“Whilst we will be no longer operating either a One Stop or an Express, we will be marketing the unit to find an alternative user for the building.

“I cannot guarantee that the end operator of the lease will not be a competitor retailer, however I would like to stress that we will consider all offers.”

Stanley Gibson, of Areley kings First, said: "We were disappointed when we lost the appeal, and after taking professional advice, decided against pursuing a judicial review against the Inspectorates decision.

“So in light of this, Tesco's decision comes as very good news, for the moment. What is going to happen to the squirrel is open to debate. The pub is now closed and boarded up and looks a sorry sight.”

Stourport Mayor Councillor Cliff Brewer said: “Everyone knows that the company is in trouble nationally but I’m surprised at this because I thought they were scaling back their plans to build bigger supermarkets rather than the smaller stores.

“I also find this decision incredible in light of the amount of money Tesco put into the appeal to overturn the original planning decision.

“While I am pleased for the people of Areley Kings who worked hard fighting these plans, I am also a bit concerned about what will happen to the site. There are many things it could be used for but it does have the facilities for a good village pub and restaurant.”