CAMPAIGNERS’ hopes that a controversial Tesco development will be blocked have been dashed after the Government refused to intervene.

A group of Highams Park residents wrote to John Denham, the secretary of state for communities and local government, asking him to call-in the decision by Waltham Forest Council to allow Tesco to build a large 24-hour store, 250 homes and shop units off Larkshall Road.

Groups including the Highams Park Forum object to the scale of the development, which they say is out of keeping with the area, will destroy small independent businesses and cause traffic chaos.

The forum, which successfully campaigned against a previous Tesco application in 2007, has now received a letter from Mr Denham, explaining that he will not examine the application.

Chairman Roger Torode said: “The Highams Park Forum regrets the decision of the secretary of state. The Forum welcomes a development which is appropriate to Highams Park and which will genuinely regenerate the area, and we have always said that we would welcome a smaller store.

“But we believe that this store is far too large, that it will damage local shops and businesses, and that it will bring unacceptable traffic congestion and pollution.

“This plan is a whole lot better than the earlier schemes because it has community facilities, so we have achieved something. But I am not sure there is much more we can do now.”

Chingford MP Iain Duncan Smith warned that the area “will die” if the development goes ahead.

But some residents said they welcome the prospect of a Tesco nearby and a group of local businessmen insist the development is essential for the local economy.

Eoin Dardis, Tesco corporate affairs manager, said: "We look forward to continuing our discussions with the local community to ensure that the new store and wider development make a positive contribution to the area."