A decision by Tesco to scrap its plans for a store in Royal Wootton Bassett have been welcomed by North Wiltshire MP James Gray.

New Tesco boss Dave Lewis wielded the axe today as he announced 43 store closures even as his shake-up of the supermarket showed signs of stemming a sales slide.

Thousands will be fearful for their jobs in the closure of unprofitable sites while Tesco will also abandon its headquarters in Cheshunt in 2016 after more than 40 years, and 49 stores in the pipeline are being cancelled.

One of these is the controversial planned store at Marsh Farm, Royal Wootton Bassett, where proposals include building 300 new homes, accommodation for elderly people and a new community facility as well as the supermarket.

But a number of residents have raised concerns that the development will kill off its famous High Street.

North Wiltshire MP James Gray, speaking from Westminster this morning, said: "I am very pleased that Tesco have now announced that they will not be proceeding with their proposed out-of-town store in Royal Wootton Bassett, which I presume also means that the housing which was to go with it at the Marsh Farm site will not go ahead either.

“I have always argued that the focus of the town must be the High Street, and an out-of-town Tesco would potentially have ruined that.”

In a letter to Mr Gray, Mr Lewis said that the planned new store at Calne would be built.

The letter saiy: "My absolute imperative has to be to protect the future of our business for the c. 300,000 colleagues we employ in communities all over the UK.

"In recent weeks we have had to face up to some very tough decisions which affect many hard-working people. I don't do that lightly and so it is with a heavy heart that I am announcing today that we are unable to proceed with 49 new planned store developments across the country, including our planned store in Royal Wootton Bassett.

"I am very sorry that we have not been able to deliver the investment that we intended. I know this news will be a real disappointment to some people in your community and we are extremely grateful for the support we have received for our plans.

"I am very aware of the importance of the site to the local community and I am determined that we will continue to work closely with you and Wiltshire Council to find the right solution for your community.

"In other news, I am pleased to let you know that following this review it remains our intention to open our planned new store in Calne. We continue to believe that our planned store would be popular and successful, providing a valued service to the local community. We are not yet in a position to confirm an opening date but we will be sure to keep you closely updated on progress.”