A CONTROVERSIAL project is set to receive a £6 million funding boost.

Detailed designs for phase three of the Valley Gardens project are currently being drawn up by Brighton and Hove City Council.

But a spokesman for Coast To Capital Local Enterprise Partnership, an alliance of councils and businesses, said its investment committee has recommended £6 million for the project despite the fact it was rated “low value for money”.

Phase three is expected to cost almost £8 million in total, making Coast To Capital’s contribution crucial.

The final decision will be made at the partnership’s board meeting on October 17.

Phase three of the Valley Gardens scheme will create about 8,800 square metres of public space between Old Steine and the Palace Pier, mainly between the Royal Pavilion and the war memorial.

If plans go ahead, the Aquarium roundabout will be replaced with a signalled junction.

Meanwhile a two-way cycle lane will be built between Marlborough Place and the seafront.

City councillor Anne Pissaridou, who is in charge of transport policy, said she was “pleased” to hear of the investment committee’s decision.

“This is essential for our city to address environmental challenges and contributes to our aim to be carbon neutral by 2030,” she said.

“Valley Gardens is a key part of our commitment to improve the city’s environment and make the city more sustainable for everyone.

The completed scheme will open up our much-loved landmarks, create a destination central park in the middle of the city, and help us move towards being a more sustainable city.”

But Brighton Tory leader Councillor Steve Bell and transport spokesman Councillor Lee Wares worried the scheme would harm tourism in the city.

They said in a joint statement: “Residents and business leaders, bus user groups, traders, some bus operators and the taxi trade around the city feel the same.

“Removing the roundabout will be a disaster as will forcing all traffic on Madeira Drive through Duke’s Mound as well as putting all the traffic on the east side of Old Steine.

“We believe that a solution exists that would encourage greater public transport use but still give people the choice of how they wish to travel.”

Coast To Capital’s report claimed phase three of the project would be “low value for money”, which the Conservatives raised concerns about.

They said: “That is a damning indictment itself, especially using taxpayers’ money.

“We are also mindful Coast To Capital noted the audit we requested.

“Thankfully, it has said depending on the report’s outcome it may have to review the funding award.”

A spokesman for Coast To Capital said it was “satisfied the relevant funding criteria has been met”.

Construction on the first two phases of Valley Gardens is currently under way.

From today there will be no access to York Place for general traffic as traffic is switched over to the east side of Old Steine.