Work on a multi-million pound hotel and spa could be delayed for years because of the credit crunch.

The project, which involves building a four-star Georgian-style 125-bed hotel and management training centre at Kilworth Springs golf club, near Lutterworth, could create 140 jobs. It was given the go-ahead a year ago after lengthy negotiations to reduce the impact of the project on nearby residents.

However, Suffolk-based Macepark (Kilworth) Ltd has drawn up revised plans to realign the main building to prevent any windows overlooking neighbours.

But the agent for the developer, John Hill said the new proposals did not signal an early start on the scheme, which has been in the pipeline for seven years.

Mr Hill said: "The new application demonstrates the determination of Macepark to ensure the buildings are of the highest quality and cause a minimal of impact on neighbours.

"Fundamentally it is the same project which was approved in February last year. It will involve 125-bedrooms. The layout may be changed to include more family rooms."

Mr Hill warned that the revised proposals did not mean work would start on the project as soon as permission was granted.

He said: "We are looking at a recession which could last from five to seven years. It may be that the conditions suitable for the development for the hotel complex could be between five to seven years off."

Lutterworth-based tour operator Stuart Hammond said: "This hotel will be a major boost to tourism in the area. "

County councillor Graham Hart said: "I welcome moves to decrease the impact on the neighbours. The project will create jobs in the area."

It is expected that the application will be discussed by Harborough District Council planning committee within eight weeks.