Traders in Oxford have received an apology from the city council after a free newspaper sent to 70,000 homes promoted Christmas shopping in London.

The City is published quarterly to inform residents about the council's activities.

The front page of the winter edition featured an advertisement for Stagecoach's Oxford Tube express coaches, suggesting that the city's residents should do their Christmas shopping in the capital.

Graham Jones, who represents traders' group Rescue Oxford (Rox) and the High Street Business Association, said he was stunned by the advert.

He said the timing was particularly bad after last month's decision by Deputy Prime Minister John Prescott to refuse permission for a £220m expansion of the Westgate Centre.

He added: "Never mind Oxford Street, what about Oxford?"

A council spokesman apologised to traders but said Stagecoach had a regular advertisement on the paper's front page. He said the council could have incurred extra charges if it was seen to reject an advert on "unreasonable grounds".

David Whitley, the marketing manager for Stagecoach Oxford, said the advert was not intended to remove trade from the city because that could damage Stagecoach's own business. He suggested Oxford traders should launch their own advertising campaign and said his company would be glad to help.

Mr Jones added: "The city council needs to make clear what its priorities are, and whether it wants to promote trade in Oxford, or in other centres.

"The council could have chosen to run a Stagecoach ad featuring bus routes into Oxford instead."

Colin Cook, executive member for the city centre, said: "This should not have happened and traders certainly deserve an apology.

"It's an unfortunate own-goal and we need to vet more carefully how adverts are selected. In the light of the Westgate decision, the council should be doing its best to promote the city centre in the run-up to Christmas."

Mr Cook said the council was in talks with developers, Capital Shopping Centres, on how to revive the Westgate Centre expansion plan.

Bill McCardle, a spokesman for the Oxfordshire Chamber of Commerce, said: "Mistakes do happen. I would like to encourage shoppers to do their Christmas shopping in Oxford, where they can enjoy the uniqueness of the independent traders, combined with high quality multiple retailers."

The council spokesman said: "Advertising in The City is sold by an independent company to subsidise costs.

"Due to the fast turnaround of the production schedule, it's not possible for councillors to see advertising before the paper is printed, but council staff do check for inappropriate material.

"The council could have faced additional charges for unreasonably refusing the advertisement."

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