A GOVERNMENT decision to approve a controversial multi-million pound retail and leisure development at Scotch Corner has been met with equal joy and dismay after almost two years of wrangling.

The £50m out-of-town designer outlet park will include up to 84 shops and create up to 700 jobs – but some traders in nearby towns have said the decision will have a devastating impact on their businesses.

Cllr Yvonne Peacock, the leader of Richmondshire District Council, said the authority was delighted the plans for a designer outlet close to the A1(M) had been given the green light, but her opposite number on Darlington Borough Council, Cllr Bill Dixon, sounded a note of caution over the effect on town centre trade.

Cllr Dixon, who fears the development could also affect Richmond, Northallerton and Thirsk, said: “It is very disappointing that the Secretary of State has concluded that the Scotch Corner Development will not have a significant impact on Darlington town centre contrary to the views of local traders and the Tees Valley authorities.

"We will continue to work hard with businesses and stakeholders to further develop and ensure Darlington remains a vibrant and sought after town centre and continues to prosper.”

The council had approved plans but they were called in for the inquiry by the Secretary of State after concerns on the size and scale of the proposals – and the effects on the economy of neighbouring towns.

Cllr Peacock said the Government's decision was "wonderful news for Richmondshire – and the economy of our area.”

She added: “The knock on effect for the area will be immense and we are very excited to see work on the scheme begin.”

Deputy leader Cllr Ian Threlfall added: “It is fantastic news for the area – people need to understand that what will be on offer is totally different to anything in our market towns or on the high street.”

Hambleton District, Stockton and Middlesbrough councils all opposed to the plans.

Mark Robson, leader of HDC, said: “We raised concerns as a result of feedback from our district’s businesses who felt it would have a detrimental effect to Hambleton as a whole. It is disappointing but not surprising it has been approved.”

Opinion was also split between independent Darlington traders.

Beryl Hankin, owner of Guru, said: “It won’t be good for Darlington, Northallerton or Richmond. We need all the help we can get at the moment in retail so this is a real backwards step.”

John Coxon, director of Leggs boutique, said he would have to seriously consider the future of his business in Darlington.

“We have been here since the 1970s, but if trade is moving away from the town centre then we will have to think about where is best for us to trade," he said. "It will certainly have a detrimental effect on footfall – we will have to look very hard at what the plans are.”

But Anna Caygill, owner of Dolly Mama in Grange Road, said: “I don’t think I’ll be too badly affected. I believe the developers are supportive of Darlington businesses and want to help drive traffic our way too.”

A spokesperson for Scotch Corner Richmond LLP, the promoters of the new Designer Outlet Village at Scotch Corner said: “This decision today completely supports what we have always maintained – it has been concluded that it is unlikely that there will be any significant adverse impact on nearby town centres as a result of the creation of a high quality outlet centre which focuses on leading designer brands.

“We want to proceed quickly and our objective is to commence construction next year.”