PLANS to apply for a lottery grant to restore a dilapidated arcade in the centre of Newport are to go ahead.

Last week the Argus reported Newport City Council was considering applying to the Heritage Lottery Fund for at least £400,000 towards a £1.7m project to regenerate the Grade II listed Market Arcade, which has been blighted by pest infestations, anti-social behaviour and a lack of business, with only 60 per cent of units currently occupied.

And yesterday, Thursday, cabinet member for regeneration and investment Cllr John Richards signed off the plan in time for the application to be lodged before the deadline of Thursday, September 1.

Confirming the decision, Cllr Richards said: “We have long recognised that the Market Arcade is in need of refurbishment and some tender loving care, but until recently the multiplicity of ownership has prevented any major progress being made on improvements to the arcade.

“I am pleased that the majority of owners have now expressed a willingness to work with us and, as a result, we have been able to explore the possibility of finding external funding for the arcade.”

But he warned the plans were still at a very early stage and the fund was not due to make a decision until January 2017.

“However, this is a significant step forward and the positive response the proposed project has already received from owners and the wider public is extremely promising,” he said.

“Enhancing this historic structure will improve the environment for those who live in, work in and visit the arcade but it will also have a wider benefit for the city centre and complement the regeneration work in that part of the city centre.”

If the application is successful the council will have 12 months to develop a detailed project, to also include neighbouring properties on High Street and Market Street.

The plan won widespread support following last week’s report, with Damien Harvey of Newport-based charitable fund InspireHubs, who in March set up a crowdfunding campaign aiming to raise money to renovate the arcade, saying he was "excited" by the announcement.

The arcade, originally named Fennell’s Arcade, was built in 1869 and reconstructed into its current form in 1905.

To view a full report into the plans visit newport.gov.uk