13 August 1999
Alnwick District Council is facing a £5m compensation claim from supermarket giant Safeway after the High Court upheld Deputy Prime Minister John Prescott's decision to scrap an out-of-town shopping scheme.
The Northumberland council had already approved outline planning permission for the supermarket, but Prescott stepped in last year and modified the scheme, banning any retail development.
Safeway is now seeking compensation of up to £5m from the council, one of the smallest in the country, with an annual budget of £3.5m.
Alnwick's insurance policy allows for a maximum compensation of only £1m. A council spokesman said it would be considering further options but is also seeking emergency aid from Prescott's Department of the Environment, Transport and the Regions.
The High Court decision means Restormel Borough Council in Cornwall could face a similar compensation claim after the DETR reversed its decision to allow an out-of-town factory outlet.
PFaug1999
