ONE of the biggest regeneration projects in Liverpool can finally get under way, after supermarket giants Tesco lost a legal battle with rivals Sainsbury’s.

“Supermarket wars” was sparked after Sainsbury’s was signed up as the retail partner in the £150m Project Jennifer scheme around the Great Homer Street area, in north Liverpool.

Tesco had originally been in talks with developers St Modwen, and brought legal action to try to proceed with their own plans in the area.

But last night a planning inspector ruled in favour of the city council, which is leading Project Jennifer and had rejected Tesco’s scheme for a 27,000 sq ft superstore and separate indoor and outdoor markets. It is the second major blow for Tesco’s plans in Merseyside in the space of a week, after the Government rejected its £400m scheme in Kirkby which included a new stadium for Everton FC.

Project Jennifer involves the building of a 110,000 sq ft supermarket, 80,000 sq ft of non-food retail stores, a market hall, 481 new homes, a health centre, a new library, and 80,000 sq ft of light industrial space.

Last night, city leaders said they were delighted the scheme could now get under way, and land assembly for the 45-acre project is due to start in spring next year.

Regeneration leader Cllr Peter Millea said: “We have always believed that what is needed here is a scheme to regenerate the district, rather than just a stand-alone store.

“This decision will enable us to go ahead with a comprehensive regeneration scheme – something which the planning inspector has clearly recognised is what is required in north Liverpool.

“Project Jennifer is a scheme which is overwhelmingly supported by the local community and they will be pleased that we can now make progress.”

He said there was still a long way to go before work could start on site, but the council was committed to seeing the project through because of its importance to the area.

Cllr Jane Corbett, who represents the Everton ward which includes the Project Jennifer area, branded the way Tesco had acted as “immoral”.

“I am delighted the scheme can now go ahead,” she said.

But Tesco always claimed its own plans would kick-start regeneration in the area which has been stalled for years. A spokesman last night denied the company had acted immorally and said it was committed to the area, which is why it had proceeded with its own plans, even after talks with St Modwen collapsed.