AMBITIOUS plans to redevelop Kendal's K Village have hit a major stumbling block following the launch of a public inquiry, reports Beth Broomby.

More than £38 million of investment and

300 jobs, promised as part of the retail development, have been thrown into uncertainty following this week's announcement that Deputy Prime Minister John Prescott will now have the final say over whether the project goes ahead.

As previously reported, plans to knock down the existing K Village buildings and replace them with a 42-shop development complete with a car park and restaurant space proved contentious when local residents mounted a campaign to stop the plans.

This week objectors greeted news of the public inquiry as a major victory.

Lound Road resident Pam Flitcroft, one of a number of objectors to the development, said: "This is excellent news.

We are over the moon.

This is what we have been hoping for all along - a chance for the arguments and issues to be looked at in more detail.

We know that whatever decision is made will be the final one but at least it has been taken all the way to the top."

Edinburgh-based developers Guinea Group, who put forward the scheme, said their commitment to Kendal and the development remained strong but refused to rule out the possibility that they could withdraw their planning application.

Hours after hearing news of the call-in Guinea Group Managing Director John Drummond described the decision as "disappointing to say the least".

Issues to be assessed during the inquiry include:

l The impact on Kendal town centre.

l The impact on the highway system.

l The design of the building.

l Car parking provision.

l Whether the need for the development had been demonstrated.

l Whether a more central site was available in the town.

A spokesman for the Government Office North West said the Government's final decision would take months rather than weeks.