Councillors have taken the first tentative steps towards setting up a major Government-backed company which could kickstart the long-awaited regeneration of Bradford city centre.

The executive committee yesterday authorised chief executive Ian Stewart to prepare the case for an urban regeneration company and bring it back to them next month.

Members would then make a recommendation to the Council on December 11 on whether a bid for a company should be made to Government regeneration agency Yorkshire Forward.

Officers say the URC would be able to draw on funding from sources including the Government and Europe because of its status. It would also be expected to pull in massive amounts of private investments.

But its main attraction to developers would be the ability to offer a full package with land issues already dealt with and funding identified. The committee was initially recommended by officers to authorise Mr Stewart to prepare and submit a bid for the company for submission to Yorkshire Forward.

But an amendment from the Labour Group that the draft case should go to the executive committee and Council was voted through with the support of all Tory members.

Liberal Democrat Councillors voted against the amendment after unsuccessfully putting forward their own proposal for detailed information about how a company would work, and be funded.

After the meeting Liberal Democrat Group member Councillor Jeanette Sunderland said: "It is giving birth to a baby with a multi-million pound appetite. We have to be sure where the funding will come from and need full information.''

But Council leader Councillor Margaret Eaton said there would be the opportunity for a scrutiny committee to examine the draft case and its implications between the executive committee discussions and a meeting of the Council on December 11.