BOURNEMOUTH council looks set to press on with plans for a new casino in town, dashing hopes the contract could be torn up.

Conservative councillors began a review of the Pavilion Theatre plans immediately on taking office in May and insisted they were not ruling out the possibility of severing the contract altogether.

But following months of negotiations with the Trevor Osborne Property Group, the cabinet is now expected to go ahead with the scheme.

Cllr Bob Chapman, cabinet member with responsibility for major projects, said: "The council is committed to the scheme. It would be very costly to withdraw from it.

"My main concern and the administration's main concern is to make sure the Pavilion is restored to its original glory and brought back to life as soon as possible."

The deal with the Trevor Osborne Property Group attracted fierce criticism after it emerged the contract was signed on the day of the local election.

But an official investigation revealed no wrong-doing by officers or councillors and pointed out the council had been committed to the scheme for three-and-a-half years.

A report to next Wednesday's cabinet meeting recommends going ahead with the scheme, following assurances over the proposed design and content.

In a change to the plans made by the previous Liberal Democrat administration, the virtual reality family attraction planned for the lower levels of the Pavilion could be replaced by a small-scale performance space.

But this all depends on whether the council can persuade the arts organisations expecting to move into a new Winter Gardens to accept a switch to the Pavilion instead.

Cllr Chapman said: "Personally, I am quite optimistic that we could get there with a sustainable arts facility. There's an awful lot of space on that floor which has got to be used."

The council has also received assurances that the new restaurants included in the scheme will be high quality and there will be no bars, takeaways or nightclubs.

Cllr Claire Smith, leader of the Liberal Democrat group, said: "As the Conservatives clearly supported the scheme when it went through full council, they have obviously come to their senses and decided it is a good scheme after all. It's a massive win for Bournemouth.