Preston City Council (PCC) has confirmed that the multi-million pound Tithebarn project is "no longer financially viable" after it was confirmed that retailer John Lewis had pulled out.

The development was given the green light by communities secretary Eric Pickles following a public inquiry and was to include a cinema, cafés and bars alongside retail units.

However, PCC said the current economic climate and John Lewis' decision to withdraw had meant that the Tithebarn plans were no longer "deliverable" in their original form.

PCC leader Peter Rankin said: "It is now clear that the large scale comprehensive Tithebarn scheme, that received planning permission as originally proposed, is financially unviable.

"Our aim though is to still re-generate the Tithebarn area of the city. Our development partner Lend Lease is working with us to rethink the proposals for Preston city centre."