TESCO has withdrawn its application for a major expansion of its Abingdon superstore - because of fresh concerns over flooding.

The supermarket firm had been expected to take on the Vale of White Horse District Council at a planning inquiry later this summer after the authority rejected Tesco's proposed extension at its Marcham Road site.

The inquiry would have cost taxpayers tens of thousands of pounds. However, in an unexpected turnaround, the supermarket firm has decided to withdraw its appeal. The decision not to continue with the appeal comes after the Environment Agency raised fresh concerns about flooding.

Originally, the Environment Agency did not object to the expansion as it did not think it would increase the risk of flooding in the area.

However, the agency changed its mind in the wake of last July's floods.

Agency spokesman Maria Goodall said: "When we were informed of Tesco's appeal, we re-assessed their proposal based on the more up-to-date information we have on flood risk. The current situation is that the site is now considered to be within the functional floodplain - and only certain exceptional uses should be permitted."

Tesco had wanted to knock down its garden centre at the Marcham Road site to make way for an extension to the main store.

It also wanted to build an extra 180 car parking spaces.

Reports by separate consultants hired by Tesco and the district council both concluded that expansion of the store would have no significant effect on the vitality of the town centre.

But despite this, Vale councillors went against the advice of planning officers and turned the planning application down.

People in Abingdon spoke of their delight at the decision.

Malcolm Moor, member of the South Abingdon Floodplain Action Group, said: "I am very pleased and relieved they are not going to expand and happy there will not be any more development on the floodplain."

Town councillor Tim Oates, who is on the planning committee, said: "I think it's good news. I think they recognise the Environment Agency will not approve applications any longer on the flood plain.

"It's good for the town."

However, the prospect of Tesco returning with a fresh planning application that takes the Environment Agency's new stance into account has not been ruled out.

This week, Tesco refused to say whether it would be submitting a new application.

The supermarket will be meeting the Vale of White Horse and the EA later this summer. None of the bodies concerned would comment on what is likely to be discussed at the meeting.

Tesco spokesman Felix Gummer said: "The Environment Agency quite rightly raised the concern about flooding, especially in light of last summer's events.

"We didn't feel that an inquiry was the way to get a solution.

"We said right from the beginning that appealing was never our preferred option, as a result we have dropped our appeal so we can continue to work in a more constructive and co-operative relationship with the district council."