Tesco has become embroiled in another embarrassing planning battle just weeks before the Competition Commission publishes the provisional findings of its groceries inquiry.

An extension to the Bury St Edmunds store may have to be pulled down after St Edmundsbury Council refused to grant retrospective planning permission.

Tesco had approval for an extension to the store's warehouse but the finished building did not comply with the original proposals.

In a report, council officers said: "Consequently, none of [the extension] as built has permission and, in theory, the whole of the works could be enforced against." The officials recommended retrospective permission but councillors refused after hearing from local objectors who said the building was too large.

"We were surprised," said a Tesco spokeswoman. "Councillors knew we wanted to apply for restrospective consent and we thought we were doing it with their agreement."

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