Ikea pulls out of store scheme

The Ikea store would have created about 600 new jobs

The furniture company IKEA has said it will not be continuing with plans to build a big new store at Grange Park in Northampton.

The proposals, which would have brought hundreds of new jobs to the area, had faced stiff opposition.

Northampton and South Northamptonshire borough councils had both been against the scheme amid fears of increased traffic and the impact on town centre trade.

A final decision on the development had been due to be made by the secretary of state for the environment, transport and the regions, deputy prime minister John Prescott.

But on Monday the furniture giant pulled out of the scheme.

The company says it remains "determined" to establish a store in the Northampton/Milton Keynes area.