The £550,000 of capital investment will help Bournemouth Council form a regeneration company with a private partner, through which major improvements will be made to the town centre. 

It is hoped the partnership will bring development such as retail units, homes and offices, releasing funds for improvements to public space and the creation of cultural and family attractions.

Tony Bray, area director for the South West RDA in Dorset, said: "We hope this investment will enable the town to recognise and unlock its development potential and remain competitive in line with other comparable centres across the region."

The council hopes to start the procurement process to find a private partner this September. Its contribution to the partnership (known as an asset backed regeneration company, is expected to be property assets, which the developer will match with cash. Each party will retain a 50% share in the company.

Stephen Godsall, programme director at Bournemouth Borough Council, added: "Securing investment in the town centre and providing a major economic boost to the town is one of the council's major priorities. This funding from the South West RDA is great news and sets us well on the road to making some elements of the vision a reality."