Towering Provincial House could continue to dominate the Bradford skyline - because it will cost £750,000 to demolish.

The future of the huge, stark building is being reconsidered by Abbey National and its development partner, Asda St James Securities, after a planning application to replace it with a bar and restaurant scheme was turned down.

Bradford Area Planning Panel councillors heavily criticised the modern design and size of the building and said it was unsuitable for the best site in the city, opposite Grade One-listed City Hall.

The company said today it had been advised there were excellent grounds for an appeal.

But Abbey National is fearful that if the appeal is rejected no other developer will be willing to pay the cost of demolition - leaving it towering over Bradford.

Meanwhile, options are being looked at for the 12-storey office block which many people want to see demolished.

If the planning application had been granted, the landmark, which was built in the early 1970s, would have been pulled down. But the panel was told by Abbey National's development adviser, Allan Verdi, that there would be a good return for the bank because the Asda scheme was viable and companies were already interested in taking half of the units.

The 200 staff were moved out last year to a new multi-million pound Abbey National complex in the Interchange.

Today, Councillor Dave Green, regeneration member of the Council's Executive Committee, said he hoped for early discussions with the partners about the problems.

Asda St James managing director Ian Barraclough said Provincial House was structurally sound, although the air conditioning needed replacing.

He said: "We are disappointed by the refusal of the planning application but we have been told we have an excellent chance of appeal."

He said they had complied with a brief prepared by planning officers, who had said at the outset they wanted the building to be pulled down. Mr Barraclough added that English Heritage was in favour of the scheme.

An Abbey National spokesman said: "We are looking at all options."

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