West Northamptonshire Development Corporation's (WNDC) planning committee has approved plans for a major overhaul of Towcester town centre.

WNDC is working in partnership with South Northamptonshire Council (SNC) and Northamptonshire County Council (NCC) on the Moat Lane scheme, which is set to include a new hotel and library. Proposals involve the regeneration of a historic site in the centre of the town and the renovation of a number of disused buildings. Offices and shops also form part of the plans.

An initial phase of the scheme, which has included a renovation of the ancient medieval fortification at Bury Mount and the restoration work at Watermeadows - now a public park, has already been completed. Planning approval for the next stage of work remains subject to issues, including transport and the site's heritage, although WNDC planning officers expect to resolve those over the coming months.

SNC cabinet member for environmental policy John Townsend said: "Other market towns will be in awe of what is happening in Towcester. The proposals will create a vibrant and safe market town for people of all ages." WNDC director of planning services Adrian Arnold added: "Moat Lane will generate more than £40m in private sector investment, bringing new jobs for local people, while providing first class community facilities in the heart of the town."

Northamptonshire Enterprise, the East Midlands Development Agency and the Homes and Communities Agency have contributed funding towards the development, along with WNDC, SNC and NCC.