Supermarket giant Tesco has submitted a controversial planning application for a new store and homes in Royal Wootton Bassett despite fierce opposition from residents.

Leda Properties and Tesco Stores first showed an interest in February in developing the site to the west of the Marsh Farm Hotel, on land which is in the parish of Lydiard Tregoze.

But proposals to build a 2,800 square metre supermarket, 320 new homes, a community hub of up to 500 square metres and a senior living development of 33 units alongside public open spaces and landscaping has divided opinion in the town.

Many residents, including former Royal Wootton Bassett mayor Les Willis, fear that the new supermarket risks killing off the high street, which prides itself on its independent businesses.

He said: “They want to do this and it’s just the most ridiculous thing that anybody has come up with. It’s going to kill off the high street totally.

“I have been just talking to people in the high street and nobody wants it. There isn’t the infrastructure to support 300 more houses and we definitely don’t need or want the Tesco.”

But other residents, such as Alan Telling, believe a new store and extra housing will be of great benefit to the town.

The 31-year-old, of Lime Kiln, said: “I think I would shop there at Tesco. I go to Asda at the moment for my shopping and it’s a long way to go on the bus.

“I think in the long term it’ll be good to have Tesco there, especially if they build the houses as well, they will need it.”

Business owners have mixed views. Hazel Newson, chairman of the town’s business association, said: “We have had a mixed reaction to this application.

“Obviously a Tesco store may affect some of our traders more than others. We hope new homes will bring more customers to the town, but this comes at a cost of losing green space and increasing traffic on our roads.”

Sophie Akokhia, corporate affairs manager at Tesco, said the new development would meet a need. She said: “We’re pleased to be able to submit an application for housing, which is much in need in the area.

“The people we have spoken to have made it clear there is not enough affordable housing in the area, and these new homes will mean adults still living with their parents will be able to move into their own homes in the area.

“The council’s own information shows that there is a need and a capacity for these homes and a new supermarket.

“It won’t compete against the high street because the people who use their butcher and their greengrocers won’t change their habits just because there’s a new supermarket. We really support those specialised, independent shops you find on the high street.

“It means that people will not be driving to Swindon and other big towns to do their food shopping. It’s also going to create 150 new jobs, and I’ve had tons of applications being sent in.”

To view the plans, visit www.wiltshire.gov.uk/planninganddevelopment.htm and search for 14/08060/OUT.