TRADERS say a new multi-million pound supermarket is costing them money.

Businesses in South Burn, next to the Tesco supermarket in Chester-le-Street, said they have lost parking and trade since work began on the store.

One firm, ABA Taxis, has even lost its taxi rank as a result of changes to the road system.

The company said that because it is a private hire taxi company, its drivers must wait outside the office because they are not allowed to pick people up from the street.

However, double yellow lines have been painted along the rank.

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

Marie Bate, office manager at ABA Taxis, 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 in South Burns are equally angry.

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

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 effect on trade.

Tesco and Chester-le-Street District Council said the supermarket was good for businesses.

A Tesco spokesman said: "Prior to this store opening, the majority of people in Chester-le-Street were leaving the 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."

George Mansbridge, economic development manager at the council, said the town had extra parking thanks to Tesco.

He said: "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."