Plans for the mixed-use scheme including modern homes, retail and leisure units, office space and a new home for the Ice Arena, were launched in 2017. But last October the council announced it was no longer moving the Ice Arena there. The retail element of the plans have also been slashed because of the fragility of the high street.

Vinci Building will begin demolishing and clearing the former BHS and Co-op buildings on the derelict city centre site over the next year-and-a-half.

The demolition, asbestos removal and works to retain three murals including the landmark Grade II listed Three Ships mural will cost £7.6m. The mural will be incorporated into the new building alongside two other murals, the Fish Mural and Sponge Mural, currently on the upper floors of the former BHS store.

The latest plans for Albion Square incorporating the Grade 2 listed Three Ships mural Credit: Hull Council

Hull Council leader Daren Hale said it was a “vitally important” site which was in “desperate need of regeneration.”

He said: “I think with any project of this scale, it is when work begins on site and we start to see the transformation taking place that the ambition becomes a reality – so I can’t wait to see work begin this month.

“Albion Square will play an important role in the ongoing regeneration of our city centre, complementing the millions of pounds of projects and investment we’ve already seen, whilst also encouraging and supporting new businesses and investment.”

However leader of the Liberal Democrats, Coun Mike Ross, said changes to the scheme “indicate that there is a question mark over big retail schemes in the city centre given the current state of the economy”.

The view fronting onto Albion Street in the city centre Credit: Hull Council

And he said the council had “struggled to keep on top of spending” over a range of projects, most recently the cost of the Albert Avenue Lido, where costs have spiralled.

Coun Ross said while people would want to see the site redeveloped “ultimately what comes next has to be something that stacks up and works.”

The scheme is being supported as part of a £19.5m grant the council secured from the Government’s Levelling Up Fund.

It has also received £2.5m from the Government’s Local Growth Fund, via the Hull and East Yorkshire Local Enterprise Partnership.

There’s now more emphasis on the project’s “eco-friendly” credentials, with a large urban park included in the plans, as well as solar panels, EV charging points and a bike hub.

Construction on the site is set to start in 2023. The project is due to be completed in 2026.

New images of £96m Albion Square development as demolition work finally begins