Plans for a multi-million pound regeneration of the seafront promenade in Cleethorpes, Lincolnshire, have been put on hold by the local authority as a result of the economic downturn.

North East Lincolnshire Council (NELC) is now offering tenants on Central Promenade a two-year extension to existing leases after revising its timetable for the scheme, which had been due to get underway this autumn. However, the council has now admitted that the redevelopment, which incorporates the Hawaiian Eye café and the Submarine pub, is set to be delayed until September 2011 due to the recession.

Geoff Lowis, NELC's portfolio holder for regeneration, said: "The council still intends to develop the site but given the current recession, it has become unrealistic to work towards a scheduled start date of autumn 2009 for building work to commence. "We remain committed to a programme of works on site and are still optimistic that a range of ambitious projects to put Cleethorpes on the map will happen, despite this revised timescale."

The scheme is designed to make Cleethorpes more attractive to visitors, while also taking advantage of the sea views on offer. However, the council said that the delay will not affect the progress of the new Cleethorpes Town Team, which has been set up to lead a range of regeneration schemes in the town centre.