Supermarket giant Sainsbury’s has pulled out of a plan to open a store on the Island.

Citygrove Securities were given the go-ahead by Swale council in January for a £25million planned development on the former HBC Engineering Site in Power Station Road, Halfway.

However, Local Government minister Eric Pickles has issued a holding direction on the proposals which prevents the council from granting planning permission until he makes a final decision.

In a statement issued on behalf of the retailer, a spokesman said: "Sainsbury’s is aware of the recent decision by Communities and Local Government minister Eric Pickles to issue a holding direction on the Citygrove application to build a new supermarket on the former HBC Engineering site in Power Station Road, Halfway, on the Isle of Sheppey.

"We can confirm that we have previously worked with Citygrove on proposals for a new Sainsbury’s supermarket on this site.

"However, we have no contractual relationship with Citygrove and are no longer progressing our interest in Power Station Road."

Citygrove are currently unable to confirm their future plans for the site.

Boss Andrew Rennie said: "We are trying to speak to both the local council and the government.

"It depends on the grounds and what they are, if they are irresolvable or if they are grounds we can deal with, we will then reappraise."

Swale council’s cabinet member for regeneration, culture, learning and skills, Cllr John Wright, said: "Anything that stops regeneration going forward is really a blow for the Isle of Sheppey in terms of better facilities and jobs.

"One can only hope that when the minister looks at it, he will make a fair and balanced decision.

"One that looks at the benefits and disadvantages and I hope that he finds the benefits outweigh the disadvantages.

"At the end of the day I would have thought that the developer would be looking to still carry on if the decision that the minister makes is in favour.

"Obviously there are a lot of supermarkets other than Sainsbury’s out there."