'BUILD it now or we will walk away.'

That is the message from civic chiefs to the firm behind a long-delayed Hampshire development.

TH Real Estate (THRE) has asked for more time to deliver the controversial £150million Silver Hill scheme, which will transform the centre of Winchester, after failing to start work last month.

But senior councillors fear the city centre revamp would be delayed for another four years and could ditch the firm and start again.

As they prepared for crunch talks today, council leader Stephen Godfrey warned THRE it could scrap the whole project.

"I want to tell them that it's this scheme, it's now, or really we have to protect the interests of Winchester," he said.

In a letter to Cllr Godfrey, THRE chief Mike Sales claimed the plans for new shops, flats and parking must be changed again to meet building standards.

The news, which has led to fears the scheme will collapse entirely, comes despite managers telling the council that they would start construction before the New Year.

Mr Sales proposed scrapping a proposed bus station for the second time and reducing parking in a block replacing the closed Friarsgate car park.

He also raised the prospect of legal action against the council if it terminates their contract, something civic officers believe is "unlikely", according to a new report.

The council's cabinet was due to agree a way forward at a meeting today.

Cllr Godfrey said: "What they're asking will take another three to four years to get back to where we are now. I would like to move forward with the current scheme if at all possible, and if not then we have got to find a quicker way, a better way to develop the area as soon as possible."

The council's Lib Dem opposition will call on Conservative leaders to ditch TH Real Estate today.

Group leader Cllr Lucille Thompson said the scheme had become “completely unworkable”.

She said: “I think there’s a real possibility of it collapsing entirely. It’s critical that we do take a decision now rather than later.

“We think the time has come that actually we need to really draw lots on this and give the council a bit of breathing space, to allow them to come back with a scheme that will actually benefit Winchester and will be fit for the 21st century.”

THRE sparked public protest in 2014 by dropping a bus station and all 100 discount flats from the project.

The move was overturned by the High Court last year after a legal challenge by rebel councillor Kim Gottlieb, but THRE will appeal the decision in May.

Mr Sales has asked the council to extend their contract until nine months after the results of the case, giving them time to bring forward a scheme of "acceptable quality".

But council officers believe this would delay the start of work until as late as 2020. In a report published for yesterday's meeting, corporate director Steve Tilbury and head of legal Howard Bone said scrapping the contract and finding a new developer might be the "better long-term solution".

Cllr Gottlieb, leader of the anti-Silver Hill Winchester Deserves Better campaign, said: "The council is moving in the right direction under its own steam, even if in a slow, begrudging way."

THRE has not commented despite being approached by the Daily Echo.

A recommendation from today's meeting will be referred to a special council summit on January 28 before a final decision is taken by cabinet on February 10.