CONSTRUCTION work on the £300 million Chester Northgate scheme will likely be pushed back until next year, The Standard has learnt.

It comes after the retail anchor for the development, House of Fraser, announced earlier this month that it was pulling out of the project.

Cheshire West and Chester Council (CWaC) is reviewing its options but has always maintained Northgate is more than just a retail scheme and is vital for the city’s future.

The first phase, which includes the construction of a cinema, new market and restaurants, was originally due to begin earlier this year.

However, following a meeting with members of city centre business group CH1Chester BID. CWaC has announced the start date could be pushed back to early 2019.

The authority is also awaiting a decision from the Secretary of State on whether it can compulsorily purchase a number of properties on the planned Northgate site.

It already owns around 85 per cent of the land and has applied for Compulsory Purchase Orders (CPOs) for the remainder.

Cllr Brian Clarke, Cabinet Member Economic Development and Infrastructure at CWaC, said in a statement today: “Throughout the planning process we have been consulting with local businesses, including Chester BID members this week to keep them informed as the project progresses and hear their suggestions and any concerns.

“The meeting heard that work on site may be early 2019 but timings couldn’t be confirmed until the outcome of the Secretary of State Inquiry was received.

“Following the unfortunate withdrawal of House of Fraser, we are reflecting on the impact this may have on the scheme and we are continuing to engage with interested parties as we have done all along.”

The news also comes after city property consultant Tim Kenney handed CWaC an open letter backed by more than 100 businesses calling for the Northgate project to be halted and reviewed.

He believes the retail element is now unviable due to the rapidly changing face of the national retail scene.

More people are shopping online or in out-of-town centres like Cheshire Oaks and high-profile insolvencies of once major brands point to a “structural and permanent” change for high street retail.

The council has been unable to attract any private investors to the scheme and has already put up £57 million of public funds, which some see as a serious gamble with taxpayers’ money.

Following the council’s presentation, Carl Critchlow, BID Manager at CH1ChesterBID, said: "On behalf of our members – Chester's city centre businesses – we arranged this meeting with Cheshire West and Chester Council to find out more about the proposed Northgate Development following the recent news that House of Fraser will no longer be the anchor store for the scheme.

"It's our responsibility as a Business Improvement District (BID) to ensure our members are kept fully informed on developments like this one, and this was an opportunity for the council to provide some reassurances about its future and for our businesses to question what comes next and when.

"Obviously we're still waiting to see what the decision will be from the Secretary of State with regards to the Compulsory Purchase Order (CPO), but what's clear from the meeting is that there's still a lot of work to be done, including decisions around the mix and phasing of the scheme, which is still under review.

"This development will have a significant impact on the economic vitality of our city centre so it's vital that we get this right. We need a development for Chester that will enable the city to thrive, so we'll continue to make sure the voice of Chester's business community is heard whilst the review goes on in the months ahead."