WINCHESTER councillors will tonight decide whether to walk away from the firm behind the controversial regeneration of Silver Hill.

Conservative rebels have called an emergency vote on whether to remove TH Real Estate from the £150 million project, which would redevelop a quarter of the city centre.

But Winchester City Council remains contractually obliged to launch the scheme, regardless of the result, if the under-fire developer can meet its obligations under the development agreement in the coming weeks, according to city officers.

Vist hampshirechronicle.co.uk tonight for live updates from the meeting

Meanwhile, bus operator Stagecoach has committed to using and "possibly running" a new station on the Broadway, restored to the scheme after contentious amendments were quashed by the High Court.

Tonight's Guildhall motion is led by Conservative councillors defying their own administration. Cllr Kim Gottlieb, the leading anti-Silver Hill campaigner, has been joined by three Tories, one Liberal Democrat and the council's two Labour members.

Cllr Stephen Godfrey, council leader, has warned colleagues that public services are suffering from delay to the project.

In his report to be discussed at Thursday's meeting, he said: "In the eighteen years this project has been running, matters have got worse, culminating in the closure of Friarsgate car park earlier this year. Medical provision in the centre of town is vital. Yet we have a doctors’ surgery with GPs working from premises which are unfit for purpose, waiting with increasing impatience for the council to reach a decision so they can plan their future. We know there is demand for retail space, and a threat that if it is not provided in our city centre it will migrate to out-of-city locations.

"The bus station needs replacement, we need affordable housing, the first impression that visitors have of the city – whether arriving by bus or car – is very unfavourable. There is so much else to be done."

He urged the anti-TH Real Estate camp to explain when and how a better scheme could be launched.

From today, the public can view images and a model of the 2009 scheme, which features 95,000 sq ft of retail space, 330 parking spaces and 287 homes including 100 at discount rates. The exhibition is at Winchester Guildhall's courtyard until next Thursday.

Cllr Gottlieb told the Chronicle: "The 2009 scheme is a scheme that nobody really wants. A lot of excuses are being made and a lot of confusion being created, all of which is intended to avoid doing the right thing now. The right thing now is to terminate the contract, get the right consultants on board, make sure we've got the right concept and then put it out to the open market."

The Liberal Democrats, who could outnumber the ruling group with the support of Labour and another Tory rebel, declined to discuss how they will approach tonight's vote.

If Council votes to abandon TH Real Estate, the firm will have 20 working days to meet the scheme's final conditions, including proof that it is financially viable, and set it in motion.