FARMERS in Oxfordshire have been left reeling by the news that Banbury's ancient cattle market is to close.

The livestock market - the largest in Europe and boasting a 1,000-year history stretching back to the Domesday Book - will close next Thursday with the loss of 100 jobs.

The decision by owners Midland Marts was blamed on delays in getting planning permission for a new market site alongside the M40.

But the news has sent shockwaves through the town and farming communities in three counties.

Michael Wynn, group secretary of the National Farmers Union for Banbury, said: "This has just been dropped on us like a bombshell.

"We're struggling to come to grips with it.

"It really is something of a bolt from the blue for us. The closure of the market will have a knock-on effect for other industries because when farmers come in with their animals they buy products from other tradesmen."

He said the closure would affect hundreds of farmers in Oxfordshire, Warwickshire and Northamptonshire.

Midland Marts is waiting for planning permission for its proposed new site after deputy Prime Minister and environment secretary John Prescott ordered an inquiry. Chairman Jim Watson said the firm faced a possible two-year wait for a decision and could not afford to keep the town centre site open in the meantime.

He added: "At the same time we are being beaten by huge rent, rate, water and effluent overheads, as well as the fall in commission income due to the regional decline in cattle numbers and livestock prices.

"We have been put in a corner in which we can do nothing else because it is financially impossible. A lot of farmers are absolutely shattered."

And managing director Ian Smethurst said: "We regard this as a tragedy for our staff, our customers and the area."

He said the company had worked from the site since 1925 and businesses that shared it would also lose out. In all, about 50 full-time and 50 part-time jobs are to go.

George Parish, chairman of Cherwell's north area planning committee, which granted permission for the new site, said the call for an inquiry was "short-sighted" and added: "It's a tragedy for Banbury and it is a mistake."

Tony Baldry, the town's Tory MP and a former planning minister, criticised the inquiry order.

"Clearly the cattle market could not cope with such continuing uncertainty, which is a great pity for all concerned and will be a very real blow to farmers from a wide area who use Banbury market," he added.

The inquiry was ordered after complaints from South Northamptonshire Council. Mr Prescott was to decide whether the site breached green belt and out-of-town development rules.

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