Business leaders, traders and developers today gave a big welcome to proposals for a major company to spearhead the regeneration of Bradford city centre.

The Urban Regeneration Company (URC) would be able to tap into funds from Europe, the Government and other sources to bring millions of pounds to the city and mastermind developments bringing thousands of jobs.

It would also be able to provide prestigious buildings which would be needed for Bradford's bid to become a European Capital of Culture in 2008.

The company would be one of 12 URCs backed by the Government in a bid to give a kick start to the regeneration of towns and cities.

Bradford Council is working closely with Yorkshire Forward to submit a bid based on the failure to bring to fruition developments on some of the city's prime sites. The company led by the private sector would have only one councillor on the board. Members would be local and national experts and it would probably be chaired by an international figure.

Today businessman Peter McManus, whose son Stephen is developing the former Rawson Market site as a shopping complex, said: "It is the best news for Bradford for a very long time. It has been a source of annoyance as other areas have received help to set up these companies in areas where there is far less need than Bradford's."

President of Bradford Chamber of Commerce John Pennington said: "It is possibly the only way forward for the city."

The news was also welcomed by Bradford regeneration expert David Scougal, a board member of the British Urban Regeneration Association.

"There has been a new optimism in the city recently and I think the formation of this company would be very, very good news," he said.

Jeff Frankel, chairman of Bradford Retail Action Group, said: "It's high time Bradford had something akin to the Leeds Development Corpor-ation. We look forward to it being a success."

But developer Richard Morton, of Landmark Projects, said: "We want the public sector to stay out of our lives. We don't need them. It is all going to depend on who is sitting on the board of this company.

"Too often central Govern-ment asks you to look the other way while it rebrands something without changing the way it works."

Mr Morton, who is carrying out a number of major development in the city, including a major business scheme at West Bowling Golf Club, said companies just wanted to go ahead without the interference they have experienced in the past with local authorities.

But Alan McMahon, of Aldersgate Estates, which owns the eyesore Eastbrook Hall, said it was excellent news. He hopes a company could bring its redevelopment to fruition.

Bradford Council executive committee will be asked next week to approve the submission of a bid for designation as a Government-backed company. It would be submitted to Yorkshire Forward by the end of the year.