It looks likely that Asda will be able to go ahead on build its proposed 300 French-style hypermarkets throughout the UK, following an expected government shake-up of the planning rules on May 16. This prediction has outraged the pressure group Friends of the Earth which has published a major new report revealing that supermarket groups were routinely "manipulating" the planning system. The group urges the government to strengthen the planning rules in the "Shopping the Bullies" report, not water them down, as it is expected to do when it unveils the planning White Paper.

An analysis of 50 case studies revealed submissions made with supermarket planning applications that were "often inconsistent or substandard and in some cases inaccurate and misleading". The document contradicts initial findings from the Competition Commission's probe of the £120 billion grocery sector that suggested abuse of the planning system was not widespread.

Previously Asda has said that the existing system was blocking it from expanding in around 300 sites, following its submission to the Competition Commission, which requires developers to demonstrate that the extra retail space is needed.

Sandra Bell, supermarket campaigner at Friends of the Earth, said: "The government's proposals to make it even easier for supermarkets to build vast out-of-town hypermarkets are not needed and would be a disaster for our town centres and independent shops".