Steve Parfett, spokesman for local businesses, said: "I'm absolutely delighted with the committee's decision. It shows the true value of local democracy. To go against the planners' recommendations was remarkable - but absolutely right."
However, the planning application is now likely to go before the full council planning committee where it could yet be granted - but it would still have to be considered by the Secretary of State as it contravenes the UDP.
Tame Valley councillor Peter Scott said: "The application was rejected for the same reason as the Secretary of State turned down Ikea. Tesco were intending to use the space for retail-related purposes which would make it too big."
He added: "It was suggested by the representative that if permission was not granted Tesco would pull down the store entirely but that is ridiculous. Tesco get 39,000 customers a week through that store and make huge profits."
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