WINCHESTER'S civic leader has admitted the Silver Hill scheme could collapse within months as time runs out on starting construction.

Work must begin by February to meet planning rules, while a compulsory purchase order on the site expires in March.

City council boss Stephen Godfrey said delays caused by a legal battle and failure to secure funding have raised questions over whether the current plans will go ahead.

"Anxious" council chiefs are today set to demand answers from developer TH Real Estate over a perceived lack of progress.

The developer, formerly known as Henderson, has yet to tie down a funding partner to underwrite the £150 million project, one of three preconditions which must be met.

Anti-Silver Hill councillor and campaign leader Kim Gottlieb said: "They've run out of time. No funder at this point will be interested in supporting Henderson when the long-stop date has expired and planning permission and the CPO are about to expire. Somebody with £100 million in their pocket isn't going to treat this as a serious proposition."

Winchester City Council's cabinet is set to ask the developer "formally confirm their position" at a meeting this morning.

"The council remains anxious to see progress," corporate director Steve Tilbury said in a report to cabinet.

Asked how confident he was of the current scheme being built, Cllr Godfrey told the Chronicle: "I've got concerns. It's now very close to the deadline for the CPO particularly. The scheme has not gone unconditional. I had never expected that we would get this close without going unconditional.

"It raises questions in my mind about whether we will be able to take this particular scheme forward."

The issue is further complicated by TH Real Estate going to the Court of Appeal to defend the dropping of a bus station and 100 discounted flats, ruled unlawful by the High Court in January.

A date has yet to be set for the hearing but it is likely to come after planning permission expires on February 10.

In addition, a compulsory purchase order allowing the council to buy the site expires on March 19. If the deadline is missed the council would have to negotiate a new deal with landowners or repeat a lengthy public inquiry.

TH Real Estate development director Martin Perry said: "Clearly the court granting leave to appeal is both an important and significant development for both ourselves and our partners the council. It is in all parties' interest for the appeal to be heard.

"Once the outcome is known all parties can then consider how best to move this important scheme forward having regard to all relevant circumstances existing at the time."

The company refused further comment.

Yesterday Cllr Gottlieb expressed concern that the council will "use the excuse of the Court of Appeal" to extend its relationship with TH Real Estate.

Renewing or altering the contract, despite the High Court ruling that this was done unlawfully last year, is one of several options open to the council, Cllr Godfrey said, adding that it was not his "first preference".

Failure to launch the scheme could jeopardise plans to rebuild St Clements doctors surgery, which civic chiefs refused to untie from Silver Hill last month after a petition of more than 400 signatures.

And leading councillors including Cllr Godfrey have repeatedly warned over the last year that delay to the scheme will jeopardise Winchester's economy as shoppers flock to other towns.