LIVERPOOL Council last night accused Tesco of trying to derail a major regeneration scheme in a key area in the north of the city.

Tesco is challenging the legal battle it lost against Sainsbury’s over a multi-million pound plan to revamp the Great Homer Street area.

The company will seek a review of the decision which favoured its rivals to open a supermarket as part of the £150m Project Jennifer scheme.

Last night, developers St Modwen and Liverpool Council, who are working with Sainsbury’s on the initiative, hit out at Tesco, saying it had caused yet another delay to the scheme.

Regeneration leader Cllr Peter Millea said Tesco was putting its commercial interests ahead of one of the city’s most important projects.

Tesco hit back in the war of words, saying it “categorically rejected” the claims and that it had a strong track record of delivery in Liverpool.

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

In December, a planning inspector ruled in favour of the city council, which had rejected Tesco’s scheme for a 27,000 sq ft superstore and indoor and outdoor markets.

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 week, Tesco said it would launch a judicial review challenge of the inspector’s decision, saying it was wrong on a point of law.

Neither the council nor Tesco can proceed with the separate schemes without the other’s land.

Last night, Cllr Millea, the city’s regeneration leader, said: “This news is exceptionally frustrating. Regeneration in Liverpool has made massive progress in recent years, attracting major new investment to the city.

“We are very disappointed that a company which has a good track record of investing in Liverpool should put its commercial interests in the way of one of the city’s most important regeneration projects.