Millions to be offered to boost town work

begin next year – which includes a new cinema, restaurants and more shops.

The council says it has developers interested in the eye-sore Co-op building on New Street, which it bought in 2007 as part of the Queensgate revival plans, which never came off. Council officials say lending money to developers could save the council potentially large repair bills in the future, if no development begins. Clr Peter McBride said the fund would have a “catalytic effect” as once one project was completed it would boost the fortunes of neighbouring premises.

He said: “Anything we can do to make these things happen will in turn impact on neighbouring properties in terms of making them more attractive for investment. “It will have a catalytic effect on some developments, which otherwise wouldn’t take place.”

He added: “This isn’t the case of ‘here’s £25m, how can we spend it?’

“It’s a tool that enables us to deal with possibilities we currently aren’t able to deal with.

“Some councils have used this kind of money speculatively but we will not be going as far as that.”

A council report says the loans will often be used as “short term cover” during construction of developments, with companies asked to re-pay the debt to taxpayers soon after.

The plan requires an injection of capital into the council’s budget of £5m this year, £15m in 2018/19 and another £5m in 2019/20.

It is thought the money will be found from re-assigning existing cash and none will be borrowed.

The plan must be voted through by a majority of all councillors.