TVR will now wait at its Bispahm factory while work is completed on its new facility at Blackpool Business Park instead of moving to an interhim base of operations.

The sports car manufacturer said it was 'hugely frustrated' at the turn of events, which were forced by the interhim site at Squires Gate not meeting TVR's health and safety standards.

TVR will now stay at Bispham until its new site at Blackpool Business Park is completed in 2008.

The lease at the Bispham was due to run out at the end of this month but TVR have managed to renegotiate.

David Oxley, managing director at TVR, said: "This is not a decision we have taken lightly, but the health and safety of our employees is paramount and we will not compromise it.

"We are all hugely frustrated that we could not go ahead with the move and we do sympathise with staff and others who have worked very hard to get ready."