THE credit crunch and its knock-on effect on businesses is impacting on Bromgrove’s ambitious multi-million pound regeneration plan.

Interest from developers in the town's Market Hall site has slowed after Marks and Spencer pulled out of negotiations with the owner, the district council, earlier this year.

However, the prime town centre site in St John Street still figures largely in the district council’s plan to breathe new life into Bromsgrove.

Councillor Roger Hollingworth (Alvechurch), leader of the Tory controlled council, told the Advertiser/Messenger this week: “The market site is still a major part of the regeneration plan, but because of the credit crunch people are not prepared to commit to new investment.”

Meanwhile, it is understood that the Sainsbury’s plan to build a supermarket in Bromsgrove Retail Park – opposite the Victoria Ground in Birmingham Road – is progressing, although it is understood the supermarket chain’s plans have not yet been submitted to the council.