A £70MILLION shopping centre planned for Colchester town centre is in doubt.

It was hoped work on the 175,000sq ft Vineyard Gate would begin next year, after two bigname stores were lined up to anchor the development.

However, Paul Smith, leader of Colchester Council, admitted the project – which would have replaced Vineyard Street car park and some buildings in Osborne Street – is “struggling”.

He said plans submitted to the council by the Tollgate Partnership, to create Tollgate Village – to be made up of a cinema, shops and restaurants, on 20 acres of land – had impacted directly on the planned town centre development.

Mr Smith said: “If I am honest, Vineyard Gate is struggling a little bit at the moment with talk of the development out in Stanway.

“Quite frankly, if I was a big retailer in the town centre and I heard there was a big retail park in Stanway coming, I would be looking over my shoulder.

“Clearly that has had an uncertain impact on the market.”

The Vineyard Gate development is being led by Yorkshire-based Caddick Construction.

Blueprints were initially outlined in 2002, but were shelved in 2009 because of the global economic crisis.

The proposals, for 20 shops and up to seven restaurants, were revived last year, but have not progressed.

Mr Smith added: “Developers are still in talks regarding Vineyard Gate, but they are finding it more difficult to get retailers to commit.”

The news comes after town centre big-hitters Culver Square, Lion Walk and Red Lion Yard shopping centres, along with department store Williams & Griffin, submitted opposition to the Stanway plans, saying it would cause “irreversible harm” to the town centre.

The Tollgate Partnership responded to the criticism, saying it had no wish to clash with Colchester town centre and the development would “deliver major economic benefits”.