MULTI-million pound plans to regenerate Newport city centre could suffer after a new report revealed the area was at "high risk" of flooding.

Commercial Street, the Kingsway Centre and much of the city centre's west bank are put in the report's highest risk category. That could mean new Planning guidelines being introduced which mean many forms of development - such as hotels and leisure centres - should not go on the land. However, Newport council planning officer Stuart Agnew says the city centre has not flooded in living memory.

The council is furious about the draft report on development and flood risk, called Advice Note 15 (TAN) and published by the National Assembly and the Environment Agency.

Stewart Wild, head of planning and economic regeneration, told the council's Cabinet: "It's quite a worrying document in that it gives a very negative impression of the potential for regeneration in the city centre.

"Based on plans which we feel are inaccurate and out of date, large parts of the city centre are vulnerable to flood risk." He called for a "more up to date and reasonable picture to be drawn".

Council leader Sir Harry Jones said: "We are not the only authority concerned about the accuracy and the damaging effect these reports can have."

A swathe from Crindau to the docks falls into the highest risk category of "undefended" land.

The eastern side of the city, including Llanwern, is described as "risky but with some defence".

Central Newport is the focus of an ambitious masterplan to spend hundreds of millions on regeneration.

There are plans for a hotel, car parks, apartments, leisure facilities and apartments. There is also a plan for a new city centre university campus.

Planning guidelines would play a key role in determining what can go where, and flood risks could put developers off. The council and regeneration company Newport Unlimited have both made strong objections to the draft report, which will be finalised over the coming months.

Graham Moore, chief executive of Newport Unlimited, told the Argus the company is working with the Environment Agency on a flood defence strategy.

A spokesman for the Environment Agency said the report was based on "the best information available".