Chancellor George Osborne is asked for Shrewsbury Flaxmill funding

Shrewsbury and Atcham MP Daniel Kawczynski today revealed he is writing to Mr Osborne to request money to support plans to transform the historic site.

The historic Ditherington site has been the subject of long-standing redevelopment plans with phase one - the conversion of former a stable block into a visitor centre to allow for tours of the site - expected to be completed in November.

Phase two of the project is designed to renovate the main mill, leading to the master plan intending to create homes, with some retail, and commercial space.

Funding of £12.8 million has previously been secured for the redevelopment project from the Heritage Lottery Fund, although an increase in costs meant the second phase of the project was put on hold last year. The size of the shortfall has not been identified.

Mr Kawczynski said today: "I am writing to the chancellor to outline the unique, historic nature of the world's first skyscraper.

"I also want to emphasise the economic damage that it is causing to Shrewsbury not being completed and am asking him to come up with the shortfall that Historic England needs to start redevelopment."

Alan Mosley, chairman of the Friends of the Flaxmill Maltings, welcomed any potential for extra funding.

He said: "The project is in need of maximum capital input from all sources so if there is money from Government then that would be a great advantage, bearing in mind what an important scheme it is, both in terms of protecting and sustaining the wonderful heritage and also in terms of the regeneration for a large part of Shrewsbury."

Urban Splash, the property developer responsible for restoring Fort Dunlop in Birmingham, has been in the process of drawing up a report on the project after being asked to advise on commercial possibilities for the project.

Tim Johnston, Historic England's project director for the Ditherington Flaxmill, said the draft report had highlighted the potential complexities of the scheme, saying: "The Ditherington Flaxmill is certainly one of the most challenging and technically complex regeneration projects in the country at present."

Mr Kawczynski said: "Urban Splash is making certain recommendations to as and how the project should be carried out and I am still engaging with the firm to try to give constructive practical and logistic support to see how the development can take place in a timely and cost effective way.

"Because to me that start of development is a critical matter. The opportunity lost to Shrewsbury from an economic and employment perspective of having that site mothballed is massive."

Mr Johnston said he hoped a planning application could be submitted for the site in 12 months time, with developers on site at the start of 2017.