Crisis talks for £77m town revamp

The developer said it hoped to find alternative funding

Crisis talks are due to take place in the hope a £77m regeneration project in Cumbria can be revived after its developer had funding withdrawn.

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

The plans include four new town squares, a superstore, flats and bars.

Eden District Council will later discuss plans which could see regional development agency bosses step in.

Developer Lowther Manelli said it remains committed to the project and is looking for a new backer.

Private backers

Penrith and the Border MP David Maclean has already discussed the situation with the Northwest Development Agency.

He said: "We expect to have this problem resolved by Christmas.

"The development agency is capable of funding infrastructure work.

"They don't fund shops, quite rightly, but they may be able to fund some of the roads and relocation of the football ground.

"This could get the project moving again and let other private backers continue to put their money in."

Eden Council leader Colin Nineham added: "Obviously there is a lot of doubt and concern as to when the work will recommence, but we are still very confident we can resolve the situation by the end of the year."

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