THE flagship regeneration scheme to transform the rundown heart of Southampton could be abandoned, the Daily Echo can reveal.

If the £11 million revamp project for St Mary Street doesn't get government approval by Christmas then it must be thrown out, members of the board overseeing the city's regeneration have threatened.

The Rev Angus Aagaard, head of the residents' taskgroup, said it had lost patience with the scheme, which is being developed by Bellway Urban Renewal.

Mr Aagaard said: "We should tell them to deliver or we'll look elsewhere. Our patience has run out on this particular issue.

"The Bellway project was meant to be a catalyst for the whole regeneration scheme but nothing has happened and it is getting embarrassing. We can't keep backing a horse that isn't getting anywhere," he said.

Revamp bosses promised £5.5 million of public funds ten months ago to the project, which aims to demolish empty shops and flats to build new townhouses. It was intended to provide the first physical sign of regeneration in the area, four years into the seven-year revamp project, and work had been due to start last April with the pulling down of the canopy over Kingsland Market.

However, the city is still waiting for government approval to spend such a large amount of money and the agency who have to make the decision blamed the delay on lack of information from Bellway.

But Bellway spokesman Adrian Cootes said the South East England Development Agency had been given all the information it needed to make a decision. "I'm worried about the delays too. But there is no way we would have invested more than £300,000 we have in the project if we were going to pull out when we felt like it."

The next board meeting, which could approve the scheme isn't until mid December. Regeneration boss councillor Paul Jenks said: "We are getting very frustrated. We want a decision - whether it is an acceptance or a refusal. If it's a refusal we have to start looking at other options."

The city council has already passed a compulsory purchase order on those homes and shops in the street which fall under the shadow of the development. Payoffs for owners selling up have been on hold for months while the scheme is still up in the air.

Residents have expressed their concerns overthe lengthy delays.

Caf owner Reno Abela said: "We predicted a situation like this years ago. Uncertainty is causing real problems for traders in the street."

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