ENVIRONMENT Secretary John Prescott has given the go-ahead for a store development on the outskirts of Durham.

Durham City Council approved plans by Tesco to build at Dragonville, Gilesgate Moor, in May but had to refer the scheme to Mr Prescott because of its size.

Civil servants have looked at the plans and Mr Prescott - who could have ordered a public inquiry - decided that the council's decision can stand.

The 69,000sq ft store will be built on the former Hugh Mackay carpet factory at Dragon Lane and Rennys Lane along with a petrol station.

The city council hopes that the supermarket will balance the long-established Sainsbury's store at the Arnison Centre, Pity Me, on the northern outskirts of the city.

Officials hope that shoppers in the east will use the new Tesco instead of driving across Durham to reach Sainsbury's, helping to reduce city centre congestion. The development will require traffic lights to be installed at two road junctions near the store.

Tesco has pledged that it will put £20,000 towards any traffic-calming measures needed once the store - which will be made from material such as aluminium and glass - opens.

Durham City Council's head of planning David Thorborrow said the council was required under planning rules to refer the application to Mr Prescott "because of the size and nature of the development proposed."

He said: "The Secretary of State has, however, decided that on the information before him that he does not wish to intervene in the matter and the council may decide the application itself.

"The relevant decision notice has therefore now been issued in accordance with the council's earlier resolution to approve the application."