PLANS to create about 200 jobs in the region are in jeopardy after the Government called in a scheme to expand a North-East retail park.

Peel Investments (North) wants to spend £4m doubling the size of the Peel Retail Park in Washington, Tyne and Wear, from four acres to eight acres, building three retail warehouses.

Planning officers at Sunderland City Council backed the scheme, but the Office for the Deputy Prime Minister called in the proposals. The Manchester firm must now fight their case through a planning inquiry, or drop the plans.

Senior development surveyor Roger Wheeldon said: "We are disappointed. This is not a greenfield site and there was nothing controversial about the application.

"This has more to do with central government policy on retail warehousing."

The retail park has been open for 15 years and already has a McDonalds restaurant and a Homebase.

"The land is allocated in the council's Local Plan as a retail site and we have had previous consent for other forms of development."

The company will decide next week whether to pursue its case through a planning inquiry.