Tesco has pulled one of its developments from the Government’s “eco-towns” scheme, which has dealt a blow to the flagship environmental programme.

The retailer’s Hanley Grange development, near Cambridge, was to be part of the green initiative but has faced local opposition.

Tesco said that the eco-town had been a “strong proposal” and was likely to have won Government backing. However, the retailer said that such a development “stands the best chance of being delivered successfully if a broad range of stakeholders in the region feel they have been engaged fully in the process leading up to the decision”.

Eco-town proposals have provoked widespread controversy in the areas where they are planned.

Tesco now intends to develop Hanley Grange according to regional planning guidelines.

Separately, Tesco may open its first UK pensioner-friendly supermarket at Tyneside in Newcastle. The store would feature extra-wide aisles, anti-slip floors and trolleys with built-in chairs.

Topics