COUNCIL leaders are being recommended to close the company that has masterminded Derby's regeneration over the past six years – so the public sector can take a lead on future developments.

Responsibility for bringing projects to key sites would switch to a new department within the city council, if the authority backs officers' recommendations at a meeting on Tuesday.

The changes would mean urban regeneration company Derby Cityscape would close from the end of June.

Staff would be transferred to the regeneration division at the council, which is part of the chief executive's office. There would be no job losses.

Inward investment company Marketing Derby, which is already partly funded by the council, would be given more responsibility to focus on tourism and city centre management under a new agreement with the authority.

Council chief executive Adam Wilkinson said: "The private sector alone cannot achieve our ambitions.

"The public sector should, therefore, intervene and provide the leadership in these difficult economic times.

"Our message to the local economy and to investors is that there may be tougher times ahead but, while we await the uplift in the economy, we are determined, ambitious and willing to invest public money in order to kick-start the next phase of the city's regeneration."

Council leader Hilary Jones said: "We have had good working and funding relationships with both Derby Cityscape and Marketing Derby and we feel that now is the time to build on this to strengthen our approach.

"The benefit of our new structure will mean we can combine Derby Cityscape's existing city centre master plan remit with a wider focus on the need for regeneration in other parts of the city, in our neighbourhoods and district centres."

In addition, the proposals, which are to be decided by the council's cabinet, would see a Derby Renaissance Board created to help oversee the city's regeneration strategy.

It would be chaired by an independent person rather than a councillor.

Derby Cityscape chairman Peter Richardson said: "The calls for a new structure follow a distinct change in economic circumstances nationally and regionally."

Marketing Derby would continue to work from its own offices and remain independent.

It would have a three-year agreement with the council to provide the service.

The council said the aim of the proposal was to give the company more responsibility for handling promotions with developers, tourists and visitors and potential conference organisers.

The council has approved a £10m regeneration fund which can be used to create teams and to buy land for redevelopment.