WORCESTER is set for a stunning transformation after city council bosses approved plans for 356 new homes, office space, restaurants and a three-star hotel.

Council bosses hailed the plans, set for Royal Worcester Porcelain works, as "vital to Worcester's regeneration" after approving them. Worcester City Council Leader Coun Stephen Inman said: "I am delighted that consent has been given. This is vital to our regeneration and of major benefit to the city.

"I think the right balance has been struck between leisure, housing and employment. City council planning officers looked upon the whole scheme favourably in all respects. The planners, to their credit, compromised on their original plans. This development will last our lifetime."

The Berkeley group developer amended its original application in order to get the green light from authority leaders.

There will be fewer homes - 356 as opposed to 432 - and an extended underground car park. An hotel on St Peter's street, a restored museum on Bone Mill and a restaurant are seen as key aspects to the development.

The added attraction of 50,000ft of office space on Severn Street - set to create jobs - helped sway council bosses into approving the plans. Affordable housing will account for 30 per cent of the new properties, while there will be an 80/20 split between rented and private ownership.

Many of the spaces in the 185-capacity car park on Portland Walk will be reserved for office workers and restaurant users.

An additional 186 parking spaces will be provided at Severn Street. To ease traffic congestion, planners are widening St Peter's street and making it two-way.

Coun David Tibbutt said: "This is one of the most important developments we have ever had in Worcester, so it was important we really debated the issue. "It is a very interesting project on a very important, centrally located site."

Business experts in Worcester have praised the plans - they believe too many people leave Worc-estershire to work.

Pat Prosser, from Worc-estershire Property Service, which helps businesses find premises in the county, said: "With so many houses being built in the county there are concerns that employment land could be targeted for housing and it is vital we use it for jobs. We are delighted the city council retained extra business space. We welcome developments to create jobs."