UPDATED plans to regenerate Newton Abbot would see the Alexandra Cinema building dropped from the multi-million-pound proposals designed to boost the local economy.

But councillors considering the revised plans next week, are being warned that the Future High Street-funded project could fail if the Government does not accept a revised timetable for spending the £9.2 million grant funding.

Councillors will be asked to approve the updated business plan and commit a further £600,000 to the new four-screen cinema as part of the transformational project – ahead of a December Government update.

The latest proposals will also see carbon emissions reduced by switching heating in the cinema from gas to electric and:

► The Alexandra Cinema building removed from the project

► Retaining the wall between the market hall and the cinema

► More of the Food Hall being retained than originally envisaged

► Reduce entertainment space as a result of Market Hall changes

► Improvements to current Market Hall offering greater diversity to retail offering.

The report to next week’s extraordinary full council concludes that the ‘project represents value for money, has a strategic case, is viable, is affordable and is achievable within the timeframe of the grant funding’.

It says that the funding is ‘unlikely to be available again in the foreseeable future’ and the £13 million regeneration investment will provide a £42.3 million economic benefit to the town. Under the new plans no decision would be made on the future of the Alexandra Cinema building until the new cinema was built.

One of the options, says the report, would be to offer the building for rent, long leasehold or sale of the freehold – for example for arts and culture, food and drink, live music and events.

Although the council is required to get best value, because the Grade ll listed cinema building has been classed as an Asset of Community Value, time would be allowed for community or voluntary sector groups to bid for it.

The report says the revised timetable might not be approved by the Government as the funding must be spent before March 2024 and if so, unspent budget may have to be returned.

This would require urgent action to safeguard the loss-making Market Hall and could damage its delivery reputation with government for future grant funded projects.

It concludes: ‘If the funding for the cinema is not agreed the scheme will not be able to proceed... the positive impact of the changes will be greatly reduced and the wider benefit to the town will be lost.

‘In addition, any plans for the existing Alexandra Cinema building will be lost as the existing tenant will remain in-situ.’