Business bosses have aired their fears of the impact of a new multi-million development on a city centre.

Around 60 members of the Business Improvement District attended a briefing by Henderson on their latest plans for the £150m Silver Hill redevelopment in Winchester.

They intend to alter a scheme which got planning permission in 2009, dropping a bus station and 100 affordable housing units.

Instead there will be more retail floorspace and 179 homes, fewer than originally planned but bigger in size.

Last month more than 40 BID members signed a letter opposing the BID’s support for the scheme.

They are worried that Silver Hill could suck life out of the high street.

Tony Whyman, of Childhood’s Dream toy shop, said if the scheme were to be successful it would create major parking problems as the city council proposes to remove parking from the centre of The Broadway and allow building on the car parks in Upper Brook Street and Chesil Street.

He said: “If Silver Hill works it will increase the number of people coming in. I see a nightmare scenario. We build in the centre at the same time we are reducing car parking.”

He called on the council to build a multi-storey car park in Middle Brook Street and synchronise its completion with the scheme.

Chris Downing, of Winchester Investment Solutions, questioned whether 180 private parking spaces was enough for 178 homes, including 81 three-bedroom units. Prof Chris Turner, BID director, said a lack of parking was the price of living in a city centre.

But Lesley Carr, of Bulthaup kitchen shop and BID chairman, said: “I think the scheme is fantastic. It far exceeds my expectations.”

The developers assured the audience that the scheme would boost the city.

Martin Perry, director of development at Henderson, said the scheme would protect Winchester from the growing attractions of WestQuay, Whiteley and Basingstoke.

Mr Perry said: “We believe town centres are sustainable and we should be making extra efforts to invest in town centres. Research says, as a result of Silver Hill, people will spend 27 per cent more in Winchester than they currently do.”

Nick Symons, of MMX Retail consultants, said demand for shop space in Winchester was among the highest in the country and there were very few empty shops.

Silver Hill will create 169 construction jobs and once finished an estimated 240 new jobs. If planning permission for the new scheme is secured by next spring it would take about three and a half years to complete, by late 2018.

Only around five of the letter signees attended the briefing at the Wessex Hotel.