It follows the decision by the company behind the project, Modus Eastern (Boston), to enter into administration.

The project was expected to propel Boston into the top 200 retail towns in the country and create an estimated 1,200 jobs.

Coun Richard Dungworth, cabinet member for regeneration, planning, sport and culture, said: "Given the state of the national economy the West Street development is on hold but we will continue to work with people who have an interest in the site. The work which has been done so far will underpin any future schemes which may come forward when the economic conditions improve."

Modus Eastern (Boston) is a subsidiary of Modus Ventures Limited, a firm involved in the purchase and development of land and property.
Modus Eastern (Boston) is one of 14 subsidiaries that have entered into administration with Ernst and Young in the past month (Modus Ventures Limited, meanwhile, has entered into administration with KPMG)

Joint administrator at Ernst and Young Simon Allport said: "We are currently assessing the status of various assets and developments involved."