PLANS for a Lidl in Stroud are back on the table.

The scheme to build a discount store at the Avocet Industrial Estate in Dudbridge Road had stalled - but there was a significant step forward this week.

Planning permission for a large food store on the site of Stroud Metal Company was approved two years ago – with Lidl the only supermarket to express an interest - but no further progress was made.

However, this week it was announced that £3.5 million of funding had been awarded to enable the metal company to relocate to new premises off Brunel Way in Stonehouse.

The money has come from the Gloucestershire Infrastructure and Investment Fund, which is designed to boost trade and jobs in the county.

Speaking to the SNJ on Monday, when the funding was announced, Stroud District Council chief executive David Hagg and leader Steve Lydon said they were both confident a new Lidl application would be forthcoming.

Besides a food store, the new plans would probably include housing.

“By helping the company move and expand, the existing site can be redeveloped as part of a wider regeneration scheme,” said Mr Hagg, who added that he was confident that Lidl would submit a new application.

Mr Lydon said: “The site has planning permission for a large food store but we understand a revised scheme involving a Lidl store and some housing is likely to come forward soon. I would like to see any scheme make the best of the canal frontage.”

SMC managing director Matthew Large welcomed the support from the fund.

He said the investment would safeguard 62 highly skilled engineering jobs and would help create an additional 100 posts at the new centre, due to open in December.

In addition, three apprenticeships would be created annually.

He said: “The support of GFirst LEP, Gloucestershire County Council and Stroud District Council were key to this project and without their assistance we could not have made it happen.

“Stroud Metal Company is thrilled to confirm that the construction of the new premises has now commenced.

“The land at the five-and-a-half acre site has been cleared and is being prepared to accept a 79,000sqft bespoke premises to accommodate both Stroud Metal Co and its sister company, Cotswold Plastics.”

The SNJ approached Lidl for a comment but the company did not respond.

However, in a statement in February this year, a spokesman said: “I can confirm Stroud is an area of interest for Lidl but we haven’t got any confirmed sites.”

Also on the cards is a new Aldi store at the Daniel’s Industrial Estate in Lightpill.

An application for the store was deferred by SDC’s development control committee in April due to the potential redevelopment of the Merrywalks Shopping Centre.

The application will now come before the committee on Tuesday, July 18 with a recommendation for approval.

According to Mr Hagg, Dransfield Properties, which wants to invest £10 million to refurbish Merrywalks, has a blanket objection to any supermarket applications in the Stroud area.

Wrather and Co, which owns Merrywalks, put it up for sale in January for £17.5 million.