RESIDENTS of a New Forest village have finally lost the battle to stop a Tesco convenience store from moving in alongside their little shops.

Plans for the Tesco Express store at the Esso filling station at Dibden Purlieu had sparked a 2,000-signature petition and 200 letters of objection.

The application was initially turned down by New Forest Council amid fears that it could affect the viability of other businesses.

However, an appeal was lodged with the Department for the environment, Food and Rural Affairs.

Planning inspector Peter Burden has given the go-ahead after concluding that "the effect on the vitality of Dibden Purlieu shopping centre would not be serious".

His decision has dismayed campaigners.

Helen Nowers of the Residents Against Tesco action group said: "It will be the end of Dibden Purlieu as we know it.

"But, sadly, wiping the local shopkeepers from the face of the earth doesn't appear to be a planning consideration.

"The highways authority were against it, the environmental health people were against it and the planning committee turned it down.

"Our shops up here are top-up shops and if they lose ten per cent of their business there has got to be a danger that they will go under."

It is unlikely that the campaign will be taken any further.

Pat Wyeth, chairman of the district planning development control committee which rejected the scheme, said: "I think this could be the death knell for Dibden Purlieu and I don't think government inspectors fully consider the implications of the impact shops like this will have."

Mr Burden said: "Undoubtedly (it) . . . would dilute the trade available for spending at the existing shops it would compete with to some extent.

"However, there is no evidence to indicate how or in what timescale the proposal might affect the viability of individual shops within the Dibden Purlieu shopping centre.

"It is equally possible in my view that in drawing trade to it from the existing Tesco supermarket might also lead to purchases being made at other shops within the shopping centre that are currently made at the supermarket (roughly a mile away at Applemore)."