CONTROVERSIAL plans to build an Asda store on the site of Abergavenny's livestock market have been dramatically dropped by Monmouthshire County Council The Abergavenny Chronicle can exclusively reveal.

Monmouthshire County Council (MCC) has announced that after "lengthy negotiations" on an extension to their contract, it has decided not to continue with Henry Boot as the developer of the cattle market site in Abergavenny. 

The multi-million pound scheme has been a long, controversial battle fraught with opposition from community groups.

Plans for a retail park, Asda store and library should have been going forward to the next stage in the near future but in a dramatic twist on Tuesday MCC revealed exclusively to the Abergavenny Chronicle that it is "breaking" with Henry Boot Ltd.

The council signed an agreement with Henry Boot Ltd four years ago for the £11.5m deal.

The plans immediately sparked fears for the future of the town with campaigners claiming an Asda store would stop shoppers visiting the town centre and Councillor Greenland countering by saying that the number of shoppers visiting Abergavenny has declined over eight years - a trend which could continue if plans for a Morrison's supermarket in Llanfoist go ahead.

A spokesman for MCC explained that the economic downturn had affected the retail development market and as a result Henry Boot were seeking changes to the contract which were outside the terms agreed to date by MCC's Cabinet.

Steve Greenslade, Corporate Director for the council said, "The economic situation has had an affect on this scheme as it has on many others throughout the country. 

"Following Asda's withdrawal, Henry Boot wanted changes which would have enabled them to continue with the contract.  These were unacceptable to the council.  As a result, the project board have decided not to process in this way".

Councillor Bob Greenland, MCC'S deputy leader with responsibility for regeneration, said, "We have to be aware of the different economic climate. 

"A special cabinet meeting will be held next month when the reasons why we are not proceeding with Henry Boot will be explained. However, we need to continue with the plan to redevelop the Abergavenny town centre as a necessity to retain the vitality and vibrancy of the town. I remain conscious of the likelihood of an out of town application for a food store and the detrimental effect that will have on the town.  We want to attract shoppers into Abergavenny and not away from it," said Councillor Greenland.

"Next week it is expected we shall be presenting to a special cabinet meeting, proposals leading to a new foodstore on the existing cattle market site so it is unlikely that there will be any implications for the replacement market, which is an important element of our proposals."

A spokesman for Asda confirmed that it had withdrawn its interest in the site, saying that revisions to the plans had become 'increasingly constrained'.

Asda's Chris Marlow said," "ASDA has shown its commitment to this project for over five years. Our store model and operation has evolved over that time. Taking on board the latest changes, the planning refusal in 2007, lessons from other similar developments and the fact we could not agree on a satisfactory revised proposal, we have taken the difficult decision to end our involvement in the cattle market site."