Local councillors were locked in talks to save the Vision for Newbury project last night (Thursday)- newbury.net can reveal - after it emerged that the Park Way development needs a £21m rescue package to go ahead next year.

The £120m scheme has been hit by a massive rise in construction costs, which threaten to stall the new shopping village, unless West Berkshire Council makes serious concessions.

In a private meeting of senior councillors last night, the Shearer Standard Life consortium asked for the social housing quota to be “re-examined”, to make up some of the shortfall by selling off more flats at full price. Newbury.net understands that other concessions are on the table, but that most of the agreed infrastructure projects are not being renegotiated.

Furthermore, Standard Life is believed to not be willing to back the scheme unless it gets a 15% return, according to top council sources. And, a multimillion pound subsidy to lure Debenhams away from Kennet Shopping has been negotiated.

Some councillors have accused Shearer of bidding deliberately low to win the contract, however, last night there was growing councillor support to bend the rules to keep the Vision’s flagship project on track.

It is feared that serious delays are likely to derail the current timetable, where the council hoped to sell off car parks, and eventually replace the spaces with a massive underground car park in Park Way.

Meantime, with council elections due next May, the project is also likely to put the Tories at the centre of a new “subsidy” row, just two years after they opposed the Lib Dem cinema subsidy plan.

Crucially, it could also buy time for the emerging anti-Vision alliance of candidates to win seats on a backlash, take the balance of power, and scupper deals it deems “will sell the soul of the town.”