Businesses in East Sussex have welcomed a pledge of support from the Government for a new regeneration package for the Hastings area.

It was announced by housing, planning and regeneration minister Lord Falconer during a visit to the town.

The minister met members of the Hastings and Rother Taskforce, which includes Sussex Enterprise and 1066 Enterprise.

He took part in a detailed discussion about what was needed to regenerate the area and toured the town to see the problems for himself.

Many businesses and organisations were astounded when the Government said in July it would not allow a bypass to be build around the town, having expected it to be given the green light.

John Page, area director for Sussex Enterprise and chief executive of 1066 Enterprise, said: "The minister's visit has given us an ideal opportunity to put forward the business case for regeneration.

"Lord Falconer expressed his commitment to take the plan to the next stage. This will be to lay down specific detailed plans about exactly how the problems of the area are going to be tackled.

"Sussex Enterprise will be working closely with its partners and the Government to make sure the business view is adequately supported.

"I am confident Hastings will be an exciting and prosperous place in which to live and work in the next ten years."

The regeneration package was developed by the taskforce, a partnership established by the South East England Development Agency, Sussex Enterprise, local councils and educational bodies.

The main areas covered by the strategy are to introduce broadband communications access, improve all transport links, provide a new university and draw up a package of measures for new housing, jobs and the community.

Sussex Enterprise will be responsible for developing an enterprise culture for start-up and small businesses by offering expert business advice.

Mr Page said: "Funding for the various projects looks likely to come from a number of sources, including private finance, local and central government.

"Following the disappointment over rejection of the bypass scheme, the business community has renewed hope in the future of Hastings as a centre for excellence."