Kirklees Council’s leader believes Tesco may want a smaller store in Huddersfield than the one planned.

Clr David Sheard says his suspicion is that Tesco may want to vary its current plan for the Southgate site in light of its recent financial troubles with the supermarket chain.

Questions were asked about Kirklees Council’s deal at last night’s Full Council in light of the retail giant’s financial difficulties of late.

However, Kirklees Council says its deal with Tesco is legally binding, and any change to the proposed superstore site would be subject to Tesco securing new planning permission.

Clr Sheard said: “As far as the agreement is concerned, it doesn’t affect the agreement.

“Although their share price has fallen, Tesco is still one of the country’s biggest organisations.

“We have our suspicions that Tesco may want some form of smaller store there, that will be subject to a planning decision on that site.

“Obviously the council is concerned what they do with the existing site, we’re very much concerned about that end of town.”

Clr Peter McBride, Cabinet member for investment and regeneration, added: “The commitment was that there would be a sports centre and then Tesco will be built.

‘I would be concerned if they were land banking, I can understand those fears given Tesco’s situation, but they are not going bust.

“There is no reason to believe Tesco won’t go ahead. There is no reason to believe they are having second thoughts.”

Tesco has suspended four of its bosses after the supermarket overstated its half-year profit guidance by £250m. A £22 million Tesco store due to open in Cambridgeshire in November, has been temporarily boarded and its opening delayed, while Tesco also delayed opening a new store in Lincolnshire.

Clr Andrew Cooper, Newsome Green, had asked what implications there could be for Kirklees Council and its agreement over the existing sports centre site in light of Tesco mothballing new stores and its collapse in share price.

Clr Phil Scott, Almondbury Lib Dem, asked if the council was aware of Tesco’s commitment about starting a new-build store in Huddersfield.

Kirklees Council agreed a deal with Tesco for the sale of the Southgate and sports centre land, which will be razed to make way for a new store.

That deal is said to be legally binding.

As part of the deal, the current sports centre will remain open until the new leisure centre in Springwood is ready to open. It means Tesco cannot proceed with work on the Southgate site until the middle of next year.

Both parties have always refused to reveal how much Tesco has invested.