AN out-of-town shopping development will “ring the death knell” for local traders, it has been claimed.

The warning came as the owner of the Newgate Centre, in Bishop Auckland, confirmed it was suspending plans to revamp the facility after permission was given for a scheme on the town’s outskirts.

Ravenhill Estates, which has owned the Newgate Centre since 2006, was planning an extension that would have created 100,000 sq metres of retail space.

The plans would have also led to the redesign of the accompanying bus station.

The company had objected to plans for six shops at the former Focus store in St Helen Auckland, less than two miles away, which was approved by Durham County Council.

Planning officers had called for the plans to be rejected because of the possible impact on the town centre.

The St Helen application, proposed by Metric Properties, will be sent to the Secretary of State’s office, which will decide whether to hold an inquiry.

Austin Baird, from Ravenhill Estates, said the Newgate Centre plans will be on hold until the Secretary of State has made a decision.

He said: “The development will certainly ring the death knell for existing traders.

“We should expect job losses and vacant units in Bishop Auckland town centre as independent retailers struggle to compete and occupiers relocate from the town centre.”

Councillor John Shuttleworth, from Weardale, said the council, which has invested £2.25m on street improvements in the town centre, had a “vested interest” in pushing the town centre ahead of the St Helen development and welcomed the plans to replace the “eyesore” Focus site.

Councillor Pauline Charlton, from Evenwood, said developers had their chance to redevelop other parts of the town and that was no reason to turn down the St Helen scheme.

Rob Yorke, county councillor for West Auckland, said discussions would begin with a cinema operator interested in opening in St Helen Auckland.