TESCO could be frozen out of future Swindon Council developments unless it drops plans to close Shaw Post Office.

That's the warning from Swindon councillor Nick Martin (Con, Shaw and Nine Elms), who said the council would take a dim view of the supermarket's approach to community relations if it went ahead with its plans.

Although councillors are unable to prevent Tesco developing privately-owned land, Coun Martin hinted the company could be blocked from council projects, such as the one planned for Cavendish Square in Park North.

"Tesco are trying to close a viable post office and we know it's heavily used," said Coun Martin.

"This is a simple test case of the company's integrity, and keeping the post office is not something that would cost it any large sum of money.

"We can't go round refusing planning permissions to people, but where we own land and are seeking to develop it we can decide who to shortlist.

"It's not unreasonable to build into our tender process questions of genuine commitment to the community, and with Tesco treating the community as it is, we should not invite bids from them for any future shops."

In February, Tesco announced plans to shut Shaw Post Office when it converts the One Stop shop into a Tesco Express in the summer.

Since then, angry residents have staged protests outside the post office and at Tesco's Ocotal Way store.

South Swindon MP Julia Drown is supporting the campaign, and a petition of more than 2,000 signatures has been collected.

Earlier this month Swindon councillors condemned Tesco for threatening to close the post office and threw their weight behind the campaign to save it.

The supermarket firm does not dispute that the post office in Shaw village centre is well used, particularly by residents of nearby sheltered home George Tweed Gardens.

But bosses say they need the extra space to sell a wider range of products.

Coun Martin said he hoped his comments would focus the minds of Tesco managers, who have so far not spoken to him. Last week the company posted record full-year profits of £1.6bn.

The supermarket giant dominates the UK with a 27 per cent share of the grocery market. Its 277 Tesco Express outlets have increased their market share to 5.9 per cent.