Site developer Manor Place Developments confirmed Premier Inn’s decision to pull out of the scheme due to the economic climate following the pandemic and said it has agreed terms with Lidl to include a supermarket instead.

The hotel will be replaced by five new industrial units, expected to create 100 new local jobs, while the supermarket will sit alongside the already-consented petrol filling station and drive-through Costa coffee store.

The new plans are being shared with residents in Tweedbank to get their views.

Manor Place Developments managing director, Duncan Hamilton, said: “We are delighted to have agreed terms with Lidl GB to develop a new store at the Borders Gateway development.

“It will be a great addition to the scheme and give local residents in Tweedbank access to high-quality and affordable produce on their doorstep.

“The scheme will create over 100 new jobs in Tweedbank and still bring a new petrol filling station and a Costa drive-thru, and we are looking at opportunities to bring additional trade counter operators to the new industrial units.”

The project was given the green light by Scottish Borders Council in September 2019.

Councillor David Parker, who represents Leaderdale and Melrose on the local authority, said: “Due to the pandemic, the current business climate has been difficult for everyone and I’m not surprised that Manor Place Developments have had to adjust their Tweedbank proposals in response to the economic climate.

“The new proposals will still represent a significant investment in Tweedbank and the Borders and will bring jobs to the local area.

“I’m sure everyone will welcome the new investment and will look pragmatically at the new proposals in light of the current economic backdrop.”

Lidl GB’s regional head of property, Gordon Rafferty, said: “We are pleased to have reached an agreement with Manor Place Developments to bring a Lidl store to Tweedbank.

“Our exciting plans are set to create around 35 new jobs which would be fantastic for the local area. We look forward to sharing and discussing our plans with everyone.”

Meanwhile, Lidl has also applied to replace one of its ‘dated’ Glasgow outlets with a new store at the same site.

The shop at Moss Road, Govan, will be demolished and a building of similar size constructed in its place.

A design document submitted to Glasgow City Council states: “The proposed development will replace the dated existing store with a modern, clean and contemporary store, which is considered to be in line with relevant design policy.

“The proposal will provide a significantly better quality than the existing building.

“The proposal will also meet Lidl’s operational requirements, new legislative requirements (including Deposit Return Scheme bottle store) and also provide an improved customer experience.

“Whilst it is acknowledged that the new store will have a modest uplift in net sales floorspace, it is not anticipated that trips to the site will increase significantly because of the development.”