TESCO has pulled the plug on its controversial development in Cotman Road, Colchester.

It is the third site the supermarket chain has withdrawn from this year.

The site caused controversy because residents were not consulted on the application to create the store.

John Clifton, a spokesman for the Prettygate Community Group, said: “We are delighted and we can now go to the developers and say: ‘Can we have a discussion about this?’”

“It doesn’t feel like a victory, as it is up in the air as to what’s going to be in there, but I hope we will at least be able to have a say on what happens in our community.”

Hills Building Group was given permission early last year to convert four shop units in Cotman Road into one big store.

Residents did not find out about the plans until work started, in August, because planners deemed the decision not important enough to let the council’s planning committe decide it.

Campaigners forced Colchester Council to review the decision, but independent advisers said the council was right to approve the plan.

Will Quince, Colchester MP and councillor for Prettygage, said: “We will be speaking to Hills to find out what their contingency plans are.

“I would like to see smaller units in there, offering a variety of products and services to Prettygate.

“The offering in the area is good, but it could certainly be better.”

In February, Tesco announced record losses of £961million and wrote off £7billion, most of which related to its property portfolio.

It has already scrapped plans for two stores in Colchester, in Mersea Road and Butt Road, as well as stores in Manningtree and Walton.

A Tesco spokesman said: “We have reviewed our proposals for the Cotman Road site in Prettygate, Colchester, and made the difficult decision not to proceed with plans for a new store.

“We’re very grateful to everyone who supported our proposals and will continue to work hard to serve the local community from our other stores in the area.”

Hills Building Group was asked to comment, but did not respond.