A CHIPPING Norton firm has been allowed to buy county council land at less than the full market value after councillors decided it would help the town's economy.

Oxfordshire County Council has agreed to sell a surplus part of its highways depot, off Banbury Road, Chipping Norton, to insurance providers CETA, despite receiving higher bids from other organisations.

Details of nine bids submitted and the amount the land sold for have not been released.

The council's cabinet agreed to sell the land at a lesser value after West Oxfordshire District Council leader Barry Norton and business development officer William Barton put forward a case arguing that CETA's offer should be accepted.

CETA's workforce has grown from five to about 90 since it was set up 12 years ago and the company said it had outgrown its premises on the town's Cromwell Park Estate.

Mr Norton and Mr Barton said CETA had "exhaustively investigated all potential options for relocating within Chipping Norton" without any luck, and there were fears it would have to move out of the town to continue its expansion.

They said this would lead to current and future job losses and training opportunities, but also have an effect on the number of people commuting into the town daily and the withdrawal of links with Chipping Norton School.

In a joint statement, they said it was particularly important to retain jobs in the town following the closure in 2004 of the Parker Knoll furniture factory, when 450 staff lost their jobs.

In a report to the cabinet, county council property and finance officers said there had been "considerable interest" in the depot land, which became available after improvements were made to other depots in the county.

They said CETA's lesser offer could be accepted under powers brought in by the publication of the General Disposal Consent (England) 2003.

The report said: "This gave powers to local authorities to dispose of surplus property at less than the best consideration where it would help to secure the promotion or improvement of the economic, social or environmental well-being of its area."

The cabinet agreed to allow the sale after a recommendation that the sale's funding shortfall was met by deducting money reserved to assist with the generation of new employment in the town as part of the Chipping Norton Partnership.

The partnership, including the county, district and town councils, was set up after Parker Knoll's closure with the aim of maintaining and developing Chipping Norton as a working Cotswold town.

After the decision last week, Mr Norton said: "It was important that we did what we could to secure the future of a key business and provider of jobs like CETA in the town and we are very pleased with the outcome."

Chipping Norton county councillor Hilary Hibbert-Biles said she was "delighted" that the council had decided to support the town's economy.

She said: "The county council, working with the Chipping Norton Town Partnership, is helping the town fulfil its vision of being a thriving, working Cotswold town and securing this site for an established employer in the town is an important part of that."