Doubts over town's £77m revamp

The developer said it hoped to find alternative funding

There are doubts over the future of a multi-million pound town centre redevelopment in Cumbria after its developer had funding withdrawn.

The National Australia Bank said it could no longer fund the £77m Penrith Squares development, citing "commercial reasons" for its decision.

The revamp plans included four new town squares, a superstore, flats, bars and sports facilities.

Developer Lowther Manelli said it was still committed to the project.

A spokesperson said it was looking for a new backer.

Eden Council said it remained hopeful a new funding deal could be brokered.

'Complicated scheme'

It was hoped the venture, which was first put forward in 2005, would create 950 jobs and boost the town's economy.

Eden Council said officials were working to ensure on-site work could restart.

Council leader Colin Nineham said: "With the current global financial situation still being uncertain, what is emerging is that it will take some time to develop a solution to ensure the scheme is completed.

"Whilst contractors are continuing to maintain a presence on site, it is recognised that this may need to change before a final outcome is agreed.

"Everyone has to be aware that this is a complicated scheme with a whole range of factors impacting on all parties involved.

"We are all working as fast as possible to address them so we can get back on track."