PLANS for a new Tesco on land owned by one of Scottish Labour's biggest donor have been approved.

The move came minutes before a similar scheme just yards from the site in Gorbals, Glasgow, was also backed.

The superstore will be on a 24-acre site next to the headquarters of Sir Willie Haughey's City Refrigeration, with outline permission also given for residential units, office and business space, and a new petrol station.

Glasgow City Council also gave permission for a supermarket on the site of the Larkfield Bus Depot in Govanhill, just across the M74 from the Tesco site. Although there is no confirmed retailer, it is believed talks have taken place with Sainsbury's.

In 2007, Crown Street Developments, of which Mr Haughey is sole director and majority shareholder, bought the land for nearly £13 million.

A council report says it will generate 400 jobs and about £3.7m for the local economy. But a council official raised concerns in March, days before retiring, saying it would be contrary to the council's policies and "represent a significant loss of the industry and business opportunity represented by this site".

Cathcart Developments, which is promoting the Tesco scheme, said the retailer would attract further businesses to the area as the infrastructure would be in place. The Larkfield proposal also includes options for a cinema, care home and creche at a later date, with sources insisting it is likely both schemes will co-exist.

Haughey has previously said he wanted the application approved as it would mean 400 jobs for the area.