A new supermarket and 400 jobs will be created in Cheltenham after Councillors approved controversial plans for an Asda store.

Cheltenham Borough Council’s planning committee unanimously voted through the plans for the former Woodward Diesel site in Hatherley Lane, despite claims the 42,000sq ft shop could scupper the £10 million revamp of Coronation Square in Hester’s Way.

B2 Retail, the firm behind the Square regeneration, and Councillor John Morris, cabinet member for built environment, both spoke out strongly against the proposals, but councillors’ main concern was the 24-hour opening hours requested by Asda.

Planning permission was eventually granted with the condition that hours are restricted to the same as the rival Tesco store in Collets Drive and Sainsbury’s in Tewkesbury Road and Oakley.

A spokesman for developers Cheltenham Office Park said he was delighted with the decision. “We hope to start work on the development as soon as possible and bring the site back into economic use,” he said. “This will send out a strong message that Cheltenham is open for business.”

Asda property communications manager, Tom McGarry, added: “We have received tremendous support for our plans from the people of Cheltenham. This new store will play a key role in the local community and provide greater shopping choice.”.