A controversial new leisure development set to receive even more funding, will pay for itself and will not be footed by the tax-payer, a council boss said.

Phase two of Rossendale Council's town centre Spinning Point development, which is expected to be finished in 2019, is to receive an extra £9million following a full council backing at a meeting on December 12.

The development in Rawtenstall – the biggest investment project in the council's history – will include a luxury spa, 29 apartments and seven retail outlets, after original plans for a hotel on the site were scrapped.

However, the project, which has already seen more than £3.5m invested into a new bus station as part of phase one, has experienced some backlash from concerned residents and opposition councillors.

Conservative councillor for Greensclough, Cllr Peter Steen said: "We asked that any development was put on hold as there was no transport or parking assessment put in place for the scheme.

"Then there's the question of who exactly is going to come to Rawtenstall to spend time in a luxury spa.

"The extra money is being borrowed from private investors but who is going to pay it back if it doesn't generate any cash?"

Member of Friends of Rawtenstall, Peter Wood, said: "It's madness; how can the council justify spending all this money on a luxury spa? To put all this money into such a risky proposal is insane. Who's going to pay for it all?"

However, council leader, Alyson Barnes, has justified the extra £9m borrowing, saying that the money will be paid back through income generated from the sale of the apartments and use of the spa.

She said: "Basically, there will be income generated on the site that will enable us to pay back the loan.

"And now we know what we are using the site for we will carry out a full review for parking and come up with a new scheme before phase two goes into development.

"There's a great deal of work been put into this and from the information we've gained from various consultations we feel that people will use it."

Despite Cllr Barnes' reassurances, Mr Wood said: "What about Bacup and Whitworth. Who's going to come and use a luxury spa in Rawtenstall? What about the baths in Haslingden? I know people would much prefer these to be regenerated than see a luxury spa open in the town."

Cllr Barnes added: "When we took control of this council we looked at investing in the towns that have been neglected.

"We have invested in Bacup and we have put in bids for funding for Haslingden too.

"We want to regenerate all of the towns and we have to do that using other people's money.

"We have a cross-party group looking at this and they were unanimous in supporting this course of action for phase two."