The bid to build 40 flats with shops and restaurants at 1-15 Bridge Street was due to go before Lewes District Council's planning committee on Thursday last week.

Officers had recommended the proposal be refused. However, at the last minute, the decision was deferred.

A council spokesman said new information about flood risk had been raised and this needed to be addressed.

Despite being recommended for refusal the application has received support from some residents and the town council.

Ronald Parker, of Valley Road, said: 'I have lived in Newhaven all my life and have been saddened to see it become more and more rundown over the years.

'Anything to improve both appearance and facilities within the town centre would be welcomed by the majority.

'What else is there in Newhaven to draw visitors and shoppers into the town centre?

'Newhaven is dying on its feet; there are numerous closed shops, several local companies have reduced their staff to almost nothing and there is a distinct shortage of quality and choice of commercial and leisure facilities.

'When is Lewes District Council going to wake up to Newhaven's plight and do something to help the town and its residents?

'In their infinite wisdom, they would obviously prefer closed-up shops and crumbling buildings as the 'gateway' to the town.'

Donald Torrance, of Bridge Street, said: 'Bridge Street is the first area of the town seen by visitors coming into Newhaven from either the ferry terminal or Seaford and it, therefore, made perfect sense to build a landmark building that would encourage visitors to the town, instead of driving past as so many do.

'It would seem there is strong backing for this scheme from Newhaven Town Council and a great many Newhaven residents.

'It was indeed a bleak week for Newhaven in the light of the decision to accept the incinerator, a huge and controversial blot on the landscape, yet refuse permission to actively develop the town and improve its amenities.

'When are Lewes District Council and East Sussex County Council going to proactively support Newhaven and its efforts to prosper instead of just paying lip service to regeneration?'

The district council said the application would be considered at the next available planning meeting.