THE developers behind a £150m city centre scheme have axed it with immediate effect.

Winchester City Council cabinet members rubber stamped the decision to terminate the development agreement with property giant TH Real Estate (THRE) for the proposed Silver Hill scheme.

It comes after the city council voted resoundingly to end the contract 46 votes to one on January 28 after Conservative leaders rejected THRE’s plea for more time, after the developer reversed on a pledge to start work by Christmas.

However the council could be facing the threat of legal action after shelving the developer.

In a letter sent by THRE lawyers to council officers, they claim that the council would be acting “irrational, unreasonable and unlawful” for terminating the developer agreement before the determination of an appeal over a justice review was previously brought forward by rebel councillor Kim Gottlieb.

The justice review in February last year ruled the council acted unlawfully in its handling of the multi-million pound scheme.

Speaking before cabinet members decided to terminate the agreement, council leader Stephen Godfrey, said: “There is no reason for anyone to be rejoicing.

"It is bad for Winchester but only less bad than the alternatives.

“We have to face facts that the options we have do not include building out the current scheme, therefore it is the end of the line for the developer.

“We have seen no reason why we should allow an extension to allow the judicial review to run its course, we find no reason to try to retain the compulsory purchase order, or use it ourselves and yet there is a great need for Winchester to have this area in the city regenerated.

“We have received much advice, both legally and financial about the best way forward and considered that before council this does seem the best way.

“It is with reluctance that we are faced with this difficult decision that is in the paper today.”

Cllr Godfrey also reiterated the councils desire to rebuild part of the crumbling Friarsgate car park, restore the empty Coitbury House health centre and improve Kings Walk shopping strip.

Cabinet will decide at a special meeting on February 18 whether the council holds onto land in Silver Hill bought in 2014.

The next stages for the scheme, and the development of St Clements doctors' surgery, will be considered on March 29.

The Daily Echo has approached TH Real Estate for comment but they have not yet responded.