HOPES of a retail revival in Bishop Auckland were given a boost yesterday when Asda received Government blessing for a £15m town centre superstore.

Deputy Prime Minister John Prescott gave conditional approval for the development at Wilson's Forge, between South Church Road and the southern end of Newgate Street.

As Environment Secretary, he had the final say on Asda's planning application, which was first approved by Wear Valley District Council in June 1998, and then considered at a public inquiry last February.

Asda, which said it was delighted by the decision, has already pledged to spend £2m transforming the outdated Newgate Centre, where it has its present store.

A bus service will run between the new store and the north end of the town centre, where there are hopes that at least one other major retailer is lining up to move in.

Millions of pounds of public and private sector cash is being pumped into Bishop Auckland.

More than £1.3m is coming from the Government's Single Regeneration Budget, £200,000 from English Heritage, and £400,000 from the National Lotteries Charities Board.

Another £150,000 is being spent on traffic calming measures, and £750,000 on restoring the park at Auckland Castle.

The council hopes this, and other funding, will spark a revival which will encourage much-needed business investment in the town.

Newgate Street trader Stephen Gregory welcomed the Asda approval, saying: "I am over the moon.

"Bishop Auckland has waited for this and now we have a real chance to make something of the town."

Council leader Olive Brown said: "I am delighted. It will kick-start the overall regeneration of Bishop Auckland town centre."

Planning vice-chairman Barbara Laurie said: "This investment is critical to the future development of Bishop Auckland. It is going to be a major element of transforming the town centre and leading to a more prosperous future.