A multi-million pound project to regenerate areas of Shrewsbury is key to helping the town recover from the recession, a leading Shropshire councillor has said.

A Shirehall watchdog meeting on Monday will discuss an update report on the Shrewsbury Growth Point scheme, which is ploughing more than £5 million of Government funding into town regeneration projects.

Councillors will discuss progress made in the past two years of the scheme, and the projects in line for the final year of funding to come.

Developments include providing funding towards affordable homes, continuing to support the regeneration of the Ditherington Flax Mill, improving traffic flow in the Chester Street area and developing a major town centre facility in the riverside area.

Councillor Alan Mosley, chairman of the enterprise and growth scrutiny committee, said: “The growth point has been a real shot in the arm for Shrewsbury and it’s now very important that we continue to support the town in these difficult financial times.

“It will continue to have a significant role in the regeneration of Shrewsbury’s northern corridor, and ultimately aid recovery from the economic crisis in due course. However, this is one off grant funding and we must ensure that it is being used in the most effective manner possible.”

The growth point scheme is in its third and final year of initial funding from the Department for Communities and Local Government, and has been a big part of many improvements in Shrewsbury, such as 57 affordable homes in Spring Gardens and encouraging economic growth in the town centre.

The town was named in 2007 as one of the 29  “growth points” in the UK and was handed cash by the Government to spend on infrastructure projects. This will include significant housing and creating a focus for employment, facilities and services.

Future priorities include the Chester Street Gyratory with the implementation of the scheme to improve traffic flows, reduce air quality issues and provide an improved public realm; Greenfields Exemplar Housing Scheme — eight demonstrator sustainable homes, including two affordable units, built to the latest Code for Sustainable Homes levels.