X Leisure's plans for a major £40m retail and leisure development in Milton Keynes, Buckinghamshire, has been awarded outline planning permission by the local authority.

Milton Keynes Council (MKC) has approved the leisure company's revised plans for the scheme, which will be located adjacent to its existing Xscape venue and is set to include a 64,153sq ft (5,960sq m) casino, a hotel, bars and restaurants. A public realm and 50,000sq ft (4,645sq m) of niche retail units have also been included as part of the development plans, which had to be altered due to concerns over the retail impact and proposed height of the building.

The revised plans have reduced the maximum height of the proposed hotel to 40.3m (132.2ft), and X Leisure chief executive PY Gerbeau told Leisure Opportunities that the company is committed to ensuring the project will have a positive impact on Milton Keynes. Gerbeau said: "The next stage of the project is working together with the local authorities, getting the PR right and getting everyone involved.

"We do not want a wart on the landscape. We do not want something that doesn't look good or will not trade well, compared with Xscape." However, Gerbeau revealed that plans for the hotel would be dependent on the company securing a large casino licence awarded to Milton Keynes by the government, while the proposed retail element would remain unaffected and would aim to attract customers that would not normally visit the city.

Speaking about the wider impact of the recession on the leisure industry, Gerbeau said that X Leisure's venues across the UK are continuing to perform well, although the company remains cautious going into 2010. "It's about consolidating and building on the defensive qualities of the leisure industry," he said. "Leisure operators can continue to do well in the recession - it's a case of driving slowly with the full beam on."