THE redevelopment of Blackburn's Lord Square will spur on the regeneration of the whole town centre, the council said today.

The run-down square is set to be replaced with modern shops and a shopping mall, which town hall chiefs said will lead to other buildings being overhauled.

Lord Square's owners, London-based Reit Asset Management, have submitted plans for a £15million re-vamp. The project is likely to create 200 jobs and be completed in 2006, according to the council.

Council Andy Kay, Blackburn with Darwen regeneration spokesman, said the market complex in Ainsworth Street was likely to be the next large-scale town centre project.

Bovis, the construction company which recently signed a partnership agreement with the council, is likely to carry out the work.

The market buildings and car park, built during the 1960s, could be pulled down and replaced. Coun Kay added: "The Lord Square project is a very small part of our overall visions for the town.

"The work will mark the end of the first strategy and the beginning of the second one."