The developers behind plans for a £35m overhaul of Lime Street have accused heritage campaigners fighting the proposals of “scaremongering”.

Bosses at Neptune, the company working on the project with the backing of Liverpool council , say the scheme is a sensitive attempt to radically improve a shockingly dilapidated and derelict street .

The comments come as SAVE Britain’s Heritage continues to battle the plans, with the group hoping to submit a new appeal at the end of the week.

The attempt to pump millions of pounds into creating a new-look for the key city centre road has proved controversial since it was revealed last year, with SAVE arguing it would put Liverpool’s UNESCO World Heritage Site status at further risk.

But after city planners gave it the go ahead the project has survived appeals to both the government and High Court and even won the support of a local campaign group that had hoped to save the Futurist cinema which is set to be demolished as part of the student accommodation, retail and hotel scheme.

Defending the plans Steve Parry, Neptune’s managing director, said “the sensitivity and importance” of Lime Street had influenced the designs and disputed claims the section of Lime Street being redeveloped is even visible from the World Heritage Site.

And he added: “From a conservation perspective the three key listed buildings on Lime Street – The Vines and Crown public houses and the ABC Cinema – are being retained and restored. Around 40% of the original Lime Street frontage will be retained.

“Historic England is satisfied that the scheme will have no harmful impact on these important listed buildings. This scheme has been driven by conservation objectives and our desire to save what we can and radically improve a shockingly dilapidated and derelict street.”

SAVE Britain’s Heritage, which has led the fight against the proposals, is hopeful it can launch another appeal against the scheme, despite a High Court judge dismissing its case. The group is currently aiming to raise £12,500 in time for the appeal deadline at the end of this week to fund their latest action.

The project’s lead architect, Broadway Malyan’s Matt Brook, said the plans have been defined by Lime Street’s history and consultation with local people.

He said: “Some of the best-loved images of Lime Street, that really seemed to capture its identity, were the iconic photographs of its old neon advertising. The new facades not only create a sense of variety and discovery but allow us to dramatically illuminate the buildings, expressing the spirit of a street that lives, moves and breathes 24/7.”

Hopeful work will soon be able to get underway on the scheme, Mr Parry added the continuing legal battle was increasing the cost of the project and that he was concerned the challenge was “more about publicity and arguing a principle rather than the merits of this scheme or the interests of the city and its people”.

He said: “They are seriously jeopardising the future of an historic Liverpool street that we are trying to save.”