A GOVERNMENT agency is to pump £10 million into two major projects to kick-start Blackpool's ambitious £1billion Masterplan.

The North West Development Agency will give Blackpool Council £7.8 million to revitalise the area around the main road into the resort, and £2 million for work at South Promenade.

Work at Seasiders Way, the second most-used road in the borough after the promenade, is expected to begin within weeks, and will include an improved road network as well as a hotel and restaurant complex, a replacement for Bloomfield Road bridge and new parkland.

The NWDA's project manager for Lancashire, Ian Whittaker, said: "This ambitious project signals that major, positive change has begun in Blackpool and is an excellent example of partners working together to benefit tourism, businesses and the local community.

"This scheme will not only lift perceptions of Blackpool as a visitor destination and investment location, but will also build on the town's many outstanding tourism assets, ensuring its future as a great place to visit for generations to come."

The plans have been welcomed by Blackpool Council's head of economic development, Alan Cavill. He said: "The Central Gateway project will be a striking first arrival point for visitors to Blackpool, and a visually stunning area for people who live and work in the area to enjoy as well."

The development will also help Blackpool FC in building a new south stand and more office accommodation at their Bloomfield Road stadium, creating up to 121 new jobs.

The south promenade work, which is already under way, will see improved lighting and landscaping, as well as improve crossing points on the tram network for safer access to Blackpool Pleasure Beach.

Mr Whittaker said: "The South Shore Promenade has already stimulated significant private sector investment into Blackpool, and this scheme will pave the way in ensuring that the resort remains a great place to visit.

"The agency is therefore pleased to support this innovative scheme, which will not only make vital improvements to the tramway, but will also complement the stunning art works on the South Shore Promenade."

Mr Cavill added: "This is the first of the many key projects in the Blackpool Masterplan and will help to set the standard for the future of Blackpool.

"The quality and drama of this public realm project being supported by the NWDA is critical to the implementation of Blackpool's renewed future."