TRADERS and councillors in Chepstow have welcomed a £500,000 European grant for the regeneration of the town.

The grant was the final cash injection before the regeneration work commences in the spring, and brings the total grant money secured for the project to £1.3 million.

Monmouthshire council has already gained £320,000 from the Welsh Assembly Government, and £450,000 from the Welsh Development Agency. It has also committed £360,000 of its own budget towards the scheme.

Dee Griffiths, acting managing director of the Herbert Lewis department store in Chepstow High Street, welcomed the news.

She said: "I think Chepstow town centre needs to be updated as it has remained the same for a long time now.

"The regeneration will encourage people to visit Chepstow and make it more of a shopping and tourist destination, which will be great for business."

Anna Toombs, owner of Chepstow Bookshop in St Mary Street, said she thought the cash would be good for business.

She said: "The town centre is currently looking a little worn at the edges and could do with smartening up. If more people are attracted to a brighter and smarter town centre, that's bound to be good for business."

County councillor Cliff Meredith, chairman of Chepstow High Street Working Group, said: "I am pleased to see that the partnership's hard work has been rewarded with this decision. We will continue to work closely together when the regeneration work gets under way.

"When the regeneration work is completed later this year, we will be actively encouraging its use for local events and community activities."

County councillor Pam Birchall, cabinet member for the environment, said: "The decision has been worth waiting for. After much hard work I am pleased to say that we can now start the enhancement of Chepstow town centre as a place to shop and visit."

She added that the works must be carried out with as little disruption as possible to traders and to the town.

The regeneration scheme will involve the introduction of high-quality materials, public artwork and the creation of useable public space for events and festivals.

The work is expected to commence in March and will be planned for completion by the end of October 2004.

The scheme is being funded by the European Union's Objective Two Transitional Funding provided by the Assembly's Local Regeneration Fund, WDA's Rural Recovery Fund and Monmouthshire county council's capital programme.