CONTROVERSIAL plans to expand an out-of-town retail park are set to be approved, despite fears from town centre shops in Accrington and Blackburn.

Manchester-based Peel Holdings has revived its plan to expand the Whitebirk retail park on the Hyndburn-Blackburn boundary.

Businesses in Accrington have claimed it would kill off town centre shopping and Blackburn Chamber of Trade has vowed to fight the project.

The application is set to be debated by Hyndburn Council on Wednesday and planning experts have recommended that the proposal is approved.

That would mean the council agreeing to drop the current restriction which prevents the retail park selling clothes and foodstuffs, which planners feel would have a "limited" impact on town centres.

Its current stores mainly trade in white goods as well as furniture and carpets.

Peel, headed by Rossendale-born John Whittaker, is pledging to attract big high street names such as Next and ASDA and create 250 jobs.

It will demolish existing buildings, knock down electricity pilons and redesign the layout of the site.

Four new units will be built and Peel has said it will be filled by a ASDA Living store and a Next, which will both focus on selling fashion and home wares, and a Boots. No tenant for the fourth unit has been announced.

The company said that it hopes hope to complement town centre shops and not compete with them.

If the development goes ahead the company says it will spend £200,000 to enhance bus services to the site and £500,000 for regeneration initiatives in Accrington town centre.

But Raymond James, a boss at Accrington's Arndale Shopping Centre, has already written to Hyndburn Council objecting to the scheme.

He said: "If the application to turn Whitebirk into a major retail park goes through it will basically be the death of the town centre."

He is backed by Hyndburn Chamber of Trade, which fears it could have the same negative knock-on effect that Deepdale Retail Centre has had on Preston.

Its president Ian Smith said: "We are urging Hyndburn Council to keep the current restrictions in place at Whitebirk."

David Cottam from Blackburn and District Chamber of Trade said: "Dropping the restrictions that exist there at the moment would be a disaster for the town centre retailers and could open the floodgates for future expansion."

A spokesman for Peel said: "Extensive public consultation has been carried out regarding the Whitebirk retail park application and 90 per cent of Hyndburn residents consulted were in support of the scheme.

"No evidence has ever been advanced to support claims that harm will be brought to Accrington town centre as a result of the application."