Motorsport firm Prodrive has won planning permission for new offices as part of plans for a new retail park for Banbury.

Yet it will only move to the former Hella lighting factory in Noral Way if permission is given for a retail park at its existing Acorn Way home.

Cherwell District Council has approved Prodrive’s plans to refurbish the Hella factory, near junction 9 of the M40.

It is expected to make a decision next month on the nearby retail park, at Wildmere Industrial Estate, to include an M&S and Next store.

The firm said it will only buy the Hella site if owner LXB properties gets permission for the Banbury Gateway retail park.

The move has concerned some town centre traders who fear it will take business away.

But LXB said the scheme would bring shoppers into the town by providing a free shuttle bus link.

Prodrive chairman David Richards said: “This is great news and means we are half way to achieving our ambition of moving into what would become a fantastic new home for Prodrive in Banbury.”

Most of the cash from the sale of the Acorn Way offices would be needed to refurbish the Hella site, spokesman Ben Sayer said.

The new offices would be “state-of-the-art” and feature a “heritage centre” and glass atrium for the public to see engineers at work on Mini and Aston Martin racing teams.