A planned Tesco store in Ipswich town centre is unaffected by the supermarket giant’s announcement it would be cancelling 49 new shop developments.

The retailer announced yesterday that 49 planned new stores nationally – including three in north Essex – would no longer be built in the wake of poor trading figures.

In addition 43 existing stores will be closed. Locations for these have not yet been released, but are expected to include a number of loss-making Express stores.

However yesterday a Tesco spokesman confirmed the store planned for Tavern Street, at the site of the former Croydon’s jewellers, would still be going ahead.

There was disappointment as Tesco revealed its proposed store in Station Road, Manningtree, was one of the projects which had been cancelled.

Though it had proved controversial with local residents, who raised concerns about increased traffic in the town caused by the superstore, the news also dealt a bitter blow to new job hopes.

A planned store at the Martello Caravan Park in Walton was also axed, along with one in Butt Road, Colchester.

Carlo Guglielmi, councillor for planning at Tendring District Council, said: “Both stores have been promised for a long time and we have been told categorically over and over again that Tesco would be proceeding.

“This is not good for Tendring in terms of new jobs and a lot of people will be disappointed by this.”

Council leader Mick Page added: “This has come as a real shock and I am bitterly disappointed.

“We have strongly supported Tesco plans at both Manningtree and Walton and it is a real blow for employment opportunities.”

He also said the council would be holding emergency talks to look at the best way forward.

Mr Lewis said: “It is with a heavy heart that I am today announcing we are unable to proceed with developments across the UK.

“Our performance as a business has fallen significantly short of where we would want it to be and my absolute imperative has to be to protect the future of our business for the 300,000 colleagues we employ in communities all over the UK.

“I know this news will be a real disappointment to many people and we’re extremely grateful for the support we’ve received for our plans.

“I am very aware of the importance of the sites to their local areas and we will work closely with councils to find the right solution for communities.”