Fears Burnley's multi-million pound Pioneer Place development may be scaled back

Under the original proposals, the £26m. Pioneer Place development would have seen Reel Cinema relocated to the town centre Pioneer car park with the addition of seven food outlets, two retail units and a 125-space car park.

Reel Cinema has already signed on as anchor tenant and planning permission for the site was granted in January. A host of large restaurant chains, including Nando's, were also thought to be interested in moving to the town.

However, Burnley Council has said that given the impact of Covid-19 and the ever-changing nature of the retail and leisure industry, the original ambitions for Pioneer Place would now be "very challenging to deliver".

Burnley Council Executive member for regeneration and economic development Coun. Gordon Birtwistle said the scheme was definitely still on but it was likely to be on a smaller scale, at least initially.

"We're trying to put together a scheme that is financially viable," he said. "A lot has changed in the last 12 months and we need to look at it in a sensible light. We don't want to bankrupt the town.

"We're going to be looking at a smaller scheme initially and when things pick up it can be finished off on a bigger scale.

"There is no interest in the units at all at the minute. The cinema is still on board and we're in talks with a supermarket for the cinema site but the retail and food sector has fallen off a cliff. Nando's had shown an interest but there is nothing right now."

Lancashire County Council has made a multi-million pound bid to the Government to help kick-start a number of 'shovel-ready' projects across the county. This includes £3.6m for Pioneer Place.

Coun. Birtwistle said: "If we were to get the £3.6m from the Government then that would definitely help. It would certainly help get the ball rolling.

"There is still a lot of work going on with agents, and the original plans are still there. The money has to stack up though. This is a big project and we don't want the people of Burnley being saddled with enormous debt.

Labour leader on Burnley Council, Coun. Mark Townsend, said it would be extremely disappointing if the town ended up with a watered down version of the scheme.

"When a smaller version of the scheme was mentioned during Full Council, it certainly raised a few eyebrows.

"We're still not really sure what is happening though. It is a temporary scaling back or are we now looking at a smaller scheme? That would be hugely disappointing. Two weeks ago we were talking about a 'shovel ready' project with the Government being asked for a £3.6m contribution. Now we don't know what is going on.

"There is so much confusion. Of course there are extenuating circumstances but we need a long-term direction

"I'm really worried about the long-term implications this could have on the town. Burnley is a town on the up. I would hate to see a scaled back, second rate scheme. It would be extremely disappointing.

"It could have a negative impact on the plans for UCLan in terms of the student experience. A watered down version may not be as attractive for students who were looking at coming to the town."

A council spokesperson said: “We are keeping our plans under constant review. Even before Covid hit, there were significant changes in the UK’s retail and leisure market, particularly in the casual dining sector.

"But while Burnley’s town centre has done well compared with similar towns, the Covid crisis makes our original ambitions for Pioneer Place very challenging to deliver.

"Even though footfall in the town centre has recovered quickly following the easing of lockdown, given the economic uncertainty, we must be prudent and plan accordingly. We are currently considering options for a phased development of the site.

"Nevertheless, an attractive town centre supporting local jobs remains a priority. The improvements to lower St. James are now underway, and we will continue our efforts to support the town to recover as quickly as possible from the covid crisis.”