SILVER Hill has been thrown into further doubt after it emerged the developer went back on claims that construction would start this month.

TH Real Estate has said the scheme is unlikely to start in the near future, making it all but certain to miss key deadlines and raising the prospect of the plans collapsing entirely.

Critics asked whether the firm could be trusted after bosses reversed their claims that work would start by the New Year.

It emerged today that bosses told the council just a week ago that they were looking at starting "later next year or even beyond".

Planning permission expires in February, while a compulsory purchase order on the site expires in March.

The revelations came from Cllr Stephen Godfrey, leader of Winchester City Council, who told cabinet this morning that he met company chiefs last week.

"They weren't sure that they would be able to go unconditional [start the scheme] in the near future," he said. "They were looking potentially at how they could deliver a scheme later next year or even beyond.

"This would obviously present us with some significant worries. Not least is that the planning application is due to expire in February and the compulsory purchase order (CPO) expires on the 19th of March next year."

Missing these dates would raise the prospect of lengthy and expensive new planning applications and land purchase deals, setting the scheme back further.

Cllr Godfrey added: "We now need to find out where we stand and what the next stage is, given that these two deadlines ... are now running so close.

"There are a number of options, none of which seem to be particularly attractive, so I think we need some more detail."

Cllr Godfrey is set to write to the company asking them to "formally confirm their position". Meanwhile city officers will draw up options with a decision set to be taken at cabinet on January 13.

Campaigners say the council could ditch TH Real Estate without penalty because, they claim, it failed to meet a works deadline in the summer.

Cllr Kim Gottlieb, leader of the anti-Silver Hill Winchester Deserves Better campaign, said after the hearing: "As things stand the scheme is more likely to be delivered by Father Christmas than by Henderson."

Urged to terminate the deal by Cllrs Rose Burns and Brian Laming, Cllr Godfrey said: "I'm not sure we're at that point yet because ideally we want to do what councillors asked us to do which is deliver the scheme as planned and agreed."

The developer, formerly known as Henderson, refused to explain the delay when approached by the Chronicle. Company chiefs have yet to secure funding to underwrite the project of shops, flats and parking.

Cllr Lucille Thompson, Lib Dem opposition leader, said: "Well, here we are again. It's December and there's absolutely no indication of anything happening on site.

"Way back in July we were told that the agreement with Hendersons was just about to go unconditional, it was just a matter of days before it was signed and ready to go, there was no point in threatening termination as the deal was about to be signed.

"How much longer do we have to wait? Is Henderson's heart really in this scheme? Can we trust them when they seem to have gone back on so many promises? I think the time has come to look very hard at the options available to us.

"I'm sure that you are relieved that you supported our motion to keep termination on the table because I think we may need it."

As previously reported, TH Real Estate has said the issue should be considered after Court of Appeal hearing.

Development director Martin Perry said in a statement on Tuesday: "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.