A multi-million pound mixed-use regeneration scheme planned for the centre of Preston has received the green light after being given the go-ahead by the Court of Administration.

The court upheld the decision by the community secretary Eric Pickles - made in November 2010 - to award planning permission for the Tithebarn development. Blackburn with Darwen Borough Council challenged Pickles' decision, which had followed a public inquiry. A cinema, cafés and bars are proposed as part of the scheme.

Preston City Council said that it will now work with developer Lend Lease and Lancashire County Council to progress the development in "what is a difficult economic climate". Peter Rankin, leader of the city council, said: "There is still a lot of work ahead, including raising the necessary finance and assembling the land.

"But now we have the planning permission, we can move forward with renewed energy and positivity to meet the challenges ahead to deliver the Tithebarn development."