TALKS are back on over the future of a major town centre development that lost out to a rival.

Council officers are speaking to the company that wanted to build a cinema and housing in Time Square, the area of shops and parking outside the market.

Big Apple's scheme for 250 homes was approved by the council and a planning inspector but turned down by secretary of state Ruth Kelly, while approval was granted to a similar scheme for opposite the train station.

John Groves, the borough council's head of planning, told last week's planning committee meeting: "There's a need for dialogue. That dialogue has already commenced.

"There will be discussions of the consequences of the decision. There will be further discussions to move the thing forwards as perhaps committee members would expect.

"Reading between the lines the prime issue was housing oversupply and that it didn't deliver affordable housing in line with policy HOU15."

Big Apple did not respond to questions about the discussions.

The original plan was for a £75m development incorporating a 10-screen cinema, 250 new homes, restaurants, bars and a public square with a big screen.