TRADERS say a multi-million pound supermarket has created havoc for them.

Businesses on South Burn, next to the new Tesco supermarket, say they have lost parking and trade since work on the store began.

One firm, ABA Taxis, said it has even lost its taxi stand as a result of the changes it has brought about to the road system.

As it is a private hire taxi company, the company said legally drivers must wait outside the office, as they cannot pick people up from the street. But double yellow lines have now been painted along their taxi rank.

Their alternative parking, the council-run car park, has now been demolished to make way for the Tesco car park, which is for supermarket shoppers only.

Office manager at ABA Taxis, Marie Bate, said: "The law is we have to return to the office because we're private hire. The council promised three parking bays for taxis, but now we've been told the yellow lines are staying there."

Other traders on South Burns are equally as angry.

Patrick Rabot, from PC Giant, said he has lost about 60 per cent of his trade since building work began on the store.

He said: "The problem isn't just Tesco opening, it's all the work that has been carried out over the last four-and-a-half months. The road has been blocked off and delivery men and customers are having to carry computers from the shop."

Paul Atkinson, from Atkinson Insurance Services and Amy Emyli, from Lee's Chop Suey House are also worried about the knock-on effect on their trade.

But Tesco and Chester-le-Street District Council both say the supermarket is good for local businesses. A spokesman for Tesco said: "Prior to this store opening, the majority of people in Chester-le-Street were leaving their town to do their main food shopping.

"Previous reports in the paper were saying how the traders welcomed this for bringing people back into the town. It seems odd that within three weeks people have changed their tune."

District council economic development manager George Mansbridge said the town now had more parking with Tesco's car park.

"The additional 300 parking spaces are central to the town's regeneration plans, which includes a comprehensive re-design of the market place. The inconvenience this might cause some traders at the market is offset by the increase in trade."