BURNLEY Council is to borrow £4million to help fund a new £20million town centre development.

It follows a meeting of the full council when members backed proposals on funding and running the new health and leisure centre on the former St Peter's car park.

Now the authority will enter into agreements with organisations, including contractors Eric Wright Group, with the first stage expected late next year.

The leisure facility will replace the Thompson Centre and cost £7.1million, of which £1.85million will be met through grants from Sport England, the Neighbourhood Renewal Fund and the Single Regeneration Budget. Other cash will come from council coffers.

Mick Cartledge, council director of community services, said the investment was more viable as £3.4million would have to be spent on upgrading the Thompson Centre to the basic requirements.

He said: "The council feels it would be far better to invest in a new state-of-the-art leisure centre that will provide people with a brand new leisure complex, together with health facilities.

"The Thompson Centre has served the town well but it is widely acknowledged a new centre will now best meet the needs of the town."

The announcement comes after the authority released more images of the design of joint venture between Burnley Council and Burnley, Pendle and Rossendale Primary Care Trust, following stinging criticism from the Government body the Commission of Architecture and the Built Environment and Burnley Civic Society.

Now architects will modify the design to accommodate concerns, including alterations to the walkway adjacent to the River Brun.

A council spokesman said it could meet the repayments as it would not have to spend money on the Thompson Centre. He said: "We are confident we can meet the repayments and what we are doing is financially sound."

Building work on the centre is expected to start next year and be finally completed in the summer of 2006.