Kennet centre landlord Plus Shops wants to build a seven screen complex, with three cafes and two restaurants, over the popular Cheap Street car park.

The £8 million scheme has already been approved in principle, although almost 1,000 shoppers and traders have signed a petition pleading for the car park to be saved, and a cinema built out of town. Among the objectors are the Empire Café, Downer & Co estate agents, and Sunflower clothes shop.

If approved, Saturday traffic is expected to increase by 13%, and as the bus service is not geared towards cinema-goers – most villages have one evening bus service – a taxi rank will be installed outside Liquid nightclub.

In return for fulfilling a Liberal Democrat election pledge to build a cinema in Newbury, the screen operator – understood to be Apollo Cinemas – will get a £350,000 subsidy taken from taxpayers' cash. Additionally, the council will pay £100,000 for a pay-on-foot ticket system for the Kennet Centre car park.

However, voters had the chance to veto the deal when Tory councillors vowed to scrap the deal last December, but were trounced by the ruling Liberals to keep the Kennet Centre scheme on track.

For its part, the Kennet Centre has agreed to pay £71,000 towards new pavements, and a footway from the train station into Market Street.

Meanwhile, archaeological testing has been waived in the rush to pass the cinema scheme, but conservationists have indicated they will stop the builders if, as expected, they unearth important Stone age remains.

The cinema – which will be open as late as 1am some nights – will also have the same Kennet Centre signage, which town heritage watchdog the Newbury Society has branded "garish".

The application will be heard on Wednesday at 6.30pm in the Market Street council chamber.