The firm's plans to redevelop the city centre have been "called in" by the government for a planning inquiry after being approved by Lancaster City Council in October.

"The call-in will add dramatically to the cost and will delay the scheme and it's difficult to comprehend that decision in this economic climate," a spokesman said.

"It goes against the Government's aim of getting the economy moving, and it puts a huge burden onto the developer."

The spokesman said he was unable to confirm yet whether Centros would attend the inquiry, and could not say how much it would cost the company. It's rumoured it could run into hundreds of thousands of pounds.

Meanwhile, Centros have delayed plans for a £500million transformation of Portsmouth's Northern Quarter while they redesign the scheme in light of the current economic crisis. Last year just three shops had signed up to a project that was originally designed to produce 80 shops, restaurants and cafes.

It could now be three years before new plans are passed – but the scheme will still go ahead, Centros says.