THE £50m Spires project which would have brought 45 shops to the centre of Newport has been shelved after vital financial backing was withdrawn.

And prospective developers AWG ( the former Morrisons Developments) have revealed the prestige project in its current form is unlikely to proceed.

Peter Walford, senior development manager for AWG Developments told Business Argus: "We are currently reconsidering our options in respect of The Spires development in the light of the local authority's (Newport borough council) decision to withdraw their support of grant funding for the scheme and lend their support to an alternative proposal being put forward for the refurbishment and redevelopment of the Kingsway Centre (Newport).

"Without the financial support of the council and the Welsh Development Agency clearly we have to review our position with The Spires.

"We are reconsidering other options as to what we can do with the land as the land is clearly there and ready to be redeveloped."

The 350-job Spires scheme, sandwiched between Commercial Street and Stow Hill, was heralded as the "saviour" for Newport when it was first revealed three years ago.

The exciting crescent-shaped, two-tier scheme was regarded as being a key weapon in the city-status bidding towns' retail "retaliation" against near neighbours Bristol and Cardiff.

Hi-tech development will see thousands of jobs being created in Newport - centre pages.