SECRET talks will take place next week over Tesco’s £11million development of the Northgate site in Bridgwater – amid speculation the project is on the verge of collapse.

The supermarket chain was given permission more than 18 months ago to build a giant Tesco Extra on the site, which includes land owned by Sedgemoor District Council and Somerset County Council, but no work has taken place.

Tesco’s profits have since taken a hit at the hands of discount rivals like Lidl and Aldi and, earlier this year, Tesco’s thenchief executive Philip Clarke said the company’s focus was moving away from larger stores to smaller shops, causing doubts about the Bridgwater scheme to grow.

The agenda for next Wednesday’s full meeting of the district council will include a behind-closed-doors item on the Tesco development – and a council spokesman said a “position statement” would be issued afterwards.

The spokesman said yesterday (Monday) that members would be updated about the development during this meeting but declined to say what this announcement might be.

Labour’s Westover ward councillor Brian Smedley said: “I fully expect the Tory Tesco dream to come crashing down at this meeting.

“Sedgemoor District Council will be left with egg on their faces.

“We didn’t want the Splash (swimming pool) site to close in the first place. As far as I see it we are looking at a lot of wasted years as well as taxpayers’ money.”

Planning permission for the 60,000 sq ft supermarket and eight other retail units was granted in February last year, but there has since been a long delay in finalising a Section 106 agreement – a legal document committing Tesco to funding a series of community benefits as part of the project.

District council spokesman Claire Faun said: “The S106 development negotiations and talks have been ongoing since the spring of 2013.

“Papers about the development agreement are being drafted and will be issued to councillors only on September 9, for discussion at a council meeting on September 17.

“The purpose of this special council meeting is to update members. This item will be discussed under exempt items, due to its commercial sensitivity. A position statement will be issued after that meeting.”

Tesco said in a statement: “We are exploring a range of options over the best use for the Bridgwater site. We are continuing close discussions with the council over the most appropriate route forward and will update the local community at the earliest possible opportunity.”