The latest complication in the Aldershot town centre development saga will not affect current work to revitalise the core of Farnborough, it has been claimed.

Linden Homes announced last week that it would review its involvement in building the residential element of Westgate, a proposed mix of housing and leisure earmarked for land between Aldershot’s Princes Hall theatre and Tesco, because of the global credit crunch.

Rushmoor Borough Council has held talks with developer Citygrove in an attempt to explore how the leisure element of the scheme, which should include a seven-screen Cine-world cinema, a hotel, cafes and restaurants, can move forward.

Options could include the council taking a more direct financial role in the development — planned for waste ground between the Princes Hall and Tesco — or linking other potential housing developers to deliver the proposed 131 flats.

However KPI, Farnborough’s town centre developer, said it would carry on its project, which will include flats, a cinema and shops, despite the gloomy world economic forecast.

A spokesman said the company “did not suffer the acute pressure on house prices” because it was the sole organisation involved.