Settle Town Council has changed its mind by the narrowest majority and backed the town’s Booths supermarket’s application to have restrictions lifted on selling certain goods.

But angry town centre shopkeepers say letting Booths sell a wider range will kill their trade.

At a packed council chamber in Settle Town Hall on Monday, councillors at an extraordinary meeting voted to back the planning application, which will be discussed in private by Craven District Council’s planning committee on Monday June 28.

Three years ago the town council, which then had different members, vowed to support traders by recommending no relaxation in restrictions when the application first emerged.

Booths had restrictions placed on it as part of a legal agreement when planning permission was granted for the store in 2000. In 2006 it applied to have some restrictions lifted, but the matter was deferred for legal consultation and no decision was ever made.

Currently the store is only allowed to sell food and drink and some household goods. It cannot sell such things as newspapers, magazines, hot food and audio items Representations against the plans had originally been made by individuals and businesses in the district, including the Chamber of Trade and town council. Later, the Chamber retracted its objection.

The town council, which recently welcomed seven new members, including two who are members of the Chamber of Trade, had mixed views.

Coun Steve Amphlett, a former chairman of the Chamber, said: “For a town to thrive, you have to bring in more customers. If Booths is thriving and bringing more people into Settle there is the opportunity for local retailers to attract more customers.”

Coun Dan Balsamini said: “I don’t think it is negative to vote against the application. I think we need to encourage trade in Settle.”

But he added that allowing one big company an advantage over other retailers in the town would be “a mistake we can’t undo.”

Resident Margaret Knights said the centre of Settle would become a ghost town.

“No one will come to the market place,” she said. “Shops and cafes will become unviable. Town centre shops have suffered already. Settle will never regenerate if these restrictions are lifted.”

Ken Meredith, owner of Car and Kitchen in the market place, said the council was being influenced by the Chamber, which had reached its own conclusions about what traders wanted, despite many not being members. He said on the morning of the meeting he had done a quick survey of town centre businesses and found three in favour of the application and 31 against.

“Booths will not necessarily affect me, but I am thinking of my fellow traders and know that if Booths is allowed to sell what it wants it will affect the rest of the town,” he said.

He also said he was unhappy that members of the council had arranged a meeting with Booths directors that was not held in public.

Former councillor Ann Ambrose said she was against the application because shops would suffer and there was no guarantee that in the long term, Booths would stay.

“By lifting these restrictions it will make them more attractive and other supermarkets may want to move in,” she said.

Five councillors voted in favour of the application, four against and there was one abstention.

Chairman Coun Ian Robinson said he would represent the council at the planning meeting.