Mr Mark Townsend, former Labour councillor for Gannow, spoke at Burnley Council's Executive Committee and asked why the project is still to get off the ground.

Mr Townsend said: "I'm sad to say I have my doubts many shoppers will be spending their money in Burnley on the run-up to Christmas. I have increasing concerns over the Curzon Street shopping site. A thriving and vibrant retail sector is essential but we have an ever increasing number of empty shops in Burnley, particularly in the Keirby Walk area.

"This represents, to me, a continuing spiral of decline in the local economy. We have spent £2m. so far and yet not one single brick has yet been laid on the Oval development.

"Where does the failure lie? A lot of private sector investment could have been made had the nettle been grasped by the council. I also want to know whether there will be any 'flagship' stores or whether they have been watered down. I hope we're not being left with a second-rate development."

But Coun. Margaret Lishman hit back saying it was not that long since Mr Townsend was a member of the steering group on this project. She said: "We are expecting a planning application in the new year for the development. I can't say who the two firms are at the moment. The majority of the £2m. was spent using North West Development Agency money to remove the long lease the Co-Op had on the site and to convert the car park.

"Of this, £1.8m. was spent before March 2006 under Labour – we've been quite frugal but we are now in a position to get it off the ground. These things take time and we just have to accept that."