THE regeneration of a Gwent town has been given a £1.3m boost by the Assembly executive.

Just under half the cash will go towards the rebuilding of Pontypool's flagship Clarence Hotel, and the rest will be spent on the redevelopment of the town's popular leisure centre.

The Clarence Hotel, which sits on the southern approach to the town, has been derelict since it was gutted by fire in 1989.

It is being renovated by Eastern Valley Housing Association, a not-for-profit landlord which rents to people throughout Torfaen and Monmouth.

The £2m scheme will restore the building's 19th-century facade and create 14 flats and 8,500 square feet of office space.

Mark Gardner, the chief executive of Eastern Valley Housing, said: "The award of this physical regeneration fund grant to the Clarence Hotel project is fantastic news.

"It recognises what can be achieved when organisations like Torfaen council and ourselves pool their expertise and resources.

"Work is already under way at the Clarence, and this grant is a major boost to delivering our project.

"We are extremely grateful to the council for its ongoing support."

Work will begin on the refurbishment of Pontypool's 30-year-old leisure centre at the end of this month.

Councillor Bob Wellington, leader of Torfaen council, said: "This is more brilliant news for Pontypool.

"The regeneration of Pontypool is a key priority for the council and these two projects are crucial to this aim.

"The plans for both projects have been finalised and work on the Clarence Hotel is already under way.

"This huge amount of money is going to support both plans and give extra benefits to the community.

"It will mean the Clarence Hotel will have office and conference facilities which will be a great boost to local businesses. It will also mean enhanced facilities at Pontypool Leisure Centre.

"Pontypool has undergone some big changes recently with the new Tesco store open and the Crane Street development opening soon."