But Calderdale Council says it remains committed to spending £2.7 million on the superstructure, changing rooms, roof, seats and the external walls of the East Stand, increasing the total capacity to 11,500.

The Shay Stadium Trust has still to decide whether it can afford further enhancements, including executive boxes and bars.

The council's regeneration and development director Ian Thompson said: "There is no danger of the council's money being withdrawn.

"The recent problems facing Halifax Town Football Club have not impacted on our commitment to get on with this."

The council had hoped work would begin on the stand this month, but Mr Thompson said: "We are still negotiating with the contractor and the Shay Stadium Trust to get as much as we can out of the scheme and we now expect work to begin later in the summer."

Mr Thompson said the council was aware of the difficulties associated with the football club but its primary contact was with the stadium trust.

"Although the club appears to have dropped three levels into the Unibond League North, we want and expect them to continue playing at the Shay."

Work on the East Stand ground to a halt in October 2001 but in April last year councillors agreed to spend up to £2.7 million on completing it.

They intend to recoup the money by making other areas of the complex available for commercial development.

A builder with experience of sports stadiums was appointed to complete the stand from a short list of three, but cannot be named until the final details are agreed and the contract is signed.

Geoff Butler, the stadium trust's chief executive, said: "Our fund- raising efforts are still ongoing and although they have not been as successful as we would have hoped at this stage, we are still looking at various options."

Your Say: What happened to Shay plan?