A £150m mixed-use regeneration scheme for Lancaster's canal corridor, which was approved by the city council in October, has been called in by communities secretary, Hazel Blears.

The Castle View project, which is being led by the London-based urban regeneration company, Centros, will now go to a public inquiry later this year, although no date has been set. Plans feature six public spaces, including a new park leading to the city's canal, new canal-side restaurants and cafés will be created and major improvements to the Dukes and the Grand theatres.

New premises for the Musicians' Co-operative will also be created, as well as 320,000sq ft (29,729sq m) of retail space and 179 residential units. Roger Dennison, chair of Lancaster City Council's planning committee, said: "Lancaster City Council's planning committee supported the application on the grounds that the development will help to further the regeneration of the district.

"What is important now is that the inquiry is held at an early date so the issues can be discussed, and a final decision issued, as soon as possible."