BUSINESS leaders and councillors believe a former supermarket which has stood vacant on a prime town centre site for more than two years is damaging trade.

Safeway, on High Street, Northallerton, was one of almost 500 Safeway stores bought by Morrisons in 2004 for 3bn. The company then began selling unwanted stores and the Northallerton branch, which employed 45 people, closed in September 2005.

At the time, a spokesman said no decision had been made about the future of the site, but said the long term plan would probably be to sell it.

The supermarket is becoming increasingly run down, but Morrisons have not yet announced any definite plans for the site.

A spokesperson for the Bradford based company, which is the UK's fourth largest supermarket chain, said: "We are considering our options as to the future of this store."

Northallerton traders believe the fact that the store, which backs on to the Applegarth car park, has been empty for so long is harming trade.

Jim Turnbull, former chairman of Northallerton Chamber of Trade, said: "It is a prime site and it is not doing that end of the High Street any good.

"I am sure if it was filled it would increase the footfall and make that end of the town a bit more vibrant. The sooner it is back in use the better."

Town and district councillor, John Coulson said: "It is definitely damaging the High Street, mainly because of the state it is in.

"It has really gone down hill and the back of it at the Applegarth side is terrible. There is rubbish all over."

Coun Coulson said the introduction of extra charges for vacant shops next year could provide an extra incentive for Morrisons to dispose of the store. Hambleton District Council will start to levy business rates on empty properties from April 1.

"Many, many people have asked me what is happening to it, and I just hope something will happen to it when they start charging empty property business rates," said Coun Coulson.

"It is such a shame because a many businesses are looking for sites to start up, and there is a perfect one there just sitting empty."