A NEW report into Preston’s £700million Tithebarn project warns the fragile state of the high street means that as many as 67 per cent of the planned tenants are “in doubt” and say the choice of store is “unrealistic”.

A decision will be made tomorrow on the controversial expansion, which has been opposed by some East Lancashire councils.

In the second day of the planning hearing, Preston councillors are expected to give the project the green light, despite stinging criticism from the report prepared on behalf of Blackburn with Darwen and Blackpool councils.

The full version, seen by the Lancashire Telegraph, was prepared by business retail experts FSP.

It was submitted at the last minute to the planning hearing and did not make it onto the official papers.

It has been dismissed as “extremely negative” by the team behind the project, and has not changed officers’ recommendations that it should get the go-ahjead.

FSP looked at the 26 retailers that have been lined up to go into the new centre, and classified them as “very worrying”, “head above water” or “healthy”.

The Tithebarn Partnership is hoping demand will pick up when the economy improves. But the report said: “It is overly simplistic to blame lack of occupier demand on the global credit crunch and current recession.”

It added: “It is almost inevitable that retail demand will not return to 2006 levels by the time leasing of Tithebarn commences.”

Opponents of the scheme, which also include Pendle Council, claim the scheme will overshadow their own regeneration, including Blackburn’s £66million shopping centre which is currently being built.

The fallout could still drag on after tomorrow’s meeting as the objections could trigger a public inquiry, further delaying the scheme.