North Devon Council (NDC) has put on hold plans to develop a mixed-use scheme in Barnstaple.

The recent downturn in the housing market and uncertainty in the high street among national retailers has made the project unfeasible during the current recession.

NDC leader Des Brailey said: "Our aim is still to see a flagship redevelopment on the site but now is not the right time. There simply isn't the money out there to fund it.

"However, interest in the site remains high and we're confident that when the recession begins to lift, this project will get back on track."

Redevelopment of the 12-acre (4.9-hectare) site by Wilson Bowden and architects Benoy to provide new eating outlets and family oriented entertainment facilities, such as a multiplex cinema, a bowling alley or a bingo hall, will be reviewed when the economy shows signs of improvement. Up to 50 retail units and a residential development also forms part of the proposed mixed-use scheme.

The council's lead member for regeneration, Malcolm Prowse, added: "This project is crucial to the regeneration of Barnstaple and will strengthen the town's importance as a sub-regional centre.

"Local people already travel as far as Exeter, Taunton and even Bristol for shopping trips so we need a scheme that will stop that leakage and provide a massive boost to the economy of Barnstaple."