Businesses in Morpeth fear its traditional town centre will be badly damaged if retail giants Tesco and Sainsbury's are allowed to build major new stores on the outskirts of the town.
But Morpeth Chamber of Trade press officer George Williams has welcomed proposals by housing and planning minister John Healey that will help protect small shops, pubs and traditional markets.
"This is the best news that we have had in relation to protecting the town centre," he said.
"It is very good news from the point of view of our defence of the town centre. If the guidelines are adhered to, it would be very good for Morpeth."
Applications from two major supermarkets – Tesco and Sainsbury's – have been submitted to Northumberland County Council, and are expected to go before councillors in February.
Mr Healey has published new advice for town hall planners that will support sustainable economic growth, protect local markets and small shops, and help councils make the decision to help speed up economic recovery in towns and rural communities.
Mr Healey said: "We need to protect and promote town centre economies, which is why I am publishing streamlined guidance strengthening the ability of councils to safeguard local services like shops and pubs – the lifeblood of our towns.
"As the country moves towards economic recovery, the government is putting in place new protections for local shops at the heart of communities as many high streets have been hit hard by a double whammy of the downturn and out-of-town retail parks.
"By strengthening the hand of local councils we are giving them the expert tools they need to put the viability and vitality of town centres first in difficult market conditions.
"The new tools go further than ever bfore to protect town centres from the harm large out-of-town developments can have."
Mr Williams added: "The town in buzzing at the minute with the opening of the Sanderson Arcade, it would be tragic if they got permission to build on the outskirts of the town.
"We have had a letter campaign throughout the year about the potential damage that these supermarkets on the outskirts of the town will cause.
"Members of the public have been very anxious to get a new supermarket, but they recognise our argument.
"We can only hope the local authority pays attention to these guidelines."
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