Regeneration plans for one of a city's most rundown areas have been hit after Tesco scaled back its development arm.

The supermarket giant has cut around 30 jobs in its property division and laid off a team responsible for mixed-use developments of shops and housing across the South East.

It admitted yesterday that the difficult financial conditions had caused it to review all of its development plans.

Among them are major projects mooted for the London Road area of Brighton and the east side of Uckfield's town centre.

The London Road scheme was expected to include a large Tesco store at the old Co-op as well as offices, shops and housing.

Brighton and Hove City Council yesterday insisted it would find a way forward for the project whether Tesco were involved or not.

It has made the area a priority for improvement after shopkeepers and residents raised concerns about the worsening state of the street and the amount of crime.

Councillor Ted Kemble, cabinet member for the economy, said: "We know that nationally Tesco are relooking at their plans but in respect of London Road we have never had any specific dealings with them.

"We have been drawing up a planning document which will be up for approval in the next few weeks and will work towards fulfilling that."

Coun Kemble admitted that the plan would rely on the participation of developers St James Investments who have bought up a lot of property around London Road.

The firm has worked on several mixed-use schemes involving Tesco in the past and had drawn up its Brighton proposals with backing from the supermarket.

The developers have also staged consultations over plans to enlarge the Tesco supermarket in Uckfield and revamp the town centre with new sports facilities, shops and housing.

Both schemes have provoked opposition from residents unhappy at the prospect of their neighbourhoods being dominated by one firm.

Councillor Keith Taylor, whose ward contains London Road, said: "If this means London Road is spared from a development that nobody wanted then I'm pleased. Redeveloping the centre of the city has got to be about more than simply profit and loss for major retailers."

St James Investments said it was still committed to delivering both schemes.

James Hepburn, project leader for the London Road project, said: "I can't comment for Tesco but we know they are keen to have a stronger presence in Brighton.

"We have slowed our proposals to fall into line with the council and once we know their plans we can go forward. We are in a huge recession and big mixed use schemes are getting cut but we believe we can bring this together slowly but surely."

Tesco declined to comment specifically on the future of either of the Sussex plans.

A spokesman said: "We will still be considering mixed use developments where they are appropriate. There may be a few that do not go ahead in this economic climate."