A judge has ruled in favour of Salford council after a court battle over a £16m land deal to build a new Tesco supermarket.

The ruling paves the way for the store to be built and brings to an end a controversial planning saga dating back to 2002.

Salford council agreed to sell the site off Pendleton Way in Salford to Tesco in 2009 and planning permission was approved a year later. The deal was agreed at £16m – and £4m has already been received by council finance bosses and earmarked for building a new primary school.

The land neighbours Salford Shopping City complex, which is owned by Salford Estates.

The company subsequently asked the High Court to review the deal and the granting of planning permission, fearing the new store would threaten trade.

It claimed the council could have got a better price for the 9.5-acre site, which it is bound to do under competition requirements.

Salford Estates also called for the planning permission to be reversed, seeking a judicial review on both points.

But Judge Waksman QC, sitting at Manchester’s Civil Justice Centre, ruled against the company in the council’s favour.

He said the information the council received over the cost of the deal from independent experts was ‘proper’ and was taken on board by planning bosses. The court heard there was ‘no proof’ that the land was worth more than Tesco paid.

Salford Estates accused the council of failing to ‘probe’ available costs on the open market.

But the judge said considerations on behalf of the council were ‘properly taken’ and bosses decided ‘rationally’ to take up the Tesco deal.

Ruling against Salford Estates, he said he would not be quashing the planning permission. He added: "The council did not act irrationally or on an error of law."

Delighted council bosses welcomed the ruling – and called on Salford Estates to apologise.

As part of the ruling, Pendleton Way is set to close – something Salford Estates said was ‘complete vindication’ for their decision to seek the review.

A spokesman for the company said: "Our priority has always been to see the closure of Pendleton Way which is vital for the local area."

Salford Estates now has 14 days to lodge an appeal.

Tweet