Councils tend to be in a bind with this sort of shit, unfortunately. They have a responsibility to "promote" their area, but a lot of big companies use the obligation councils have to their area to manipulate policy. Councils are afraid to call the bluff because they often foresee large amounts of money sailing lawyer-ward if they piss big business off.
That's not to say communities can't resist or fight for a deal that does best by the community, though. The people of Sheringham in Norfolk gave Tesco some wicked bruises.
Then, of course, you also have the problem of petty (and not so petty) corruption in local politics, and a business class who're all too happy to exploit it.