Plans to take out a bank loan worth millions of pounds to revive Wolverhampton’s planned Summer Row shopping centre have moved a step forward.

The Conservative cabinet of Wolverhampton City Council met behind closed doors last night to approve investigating the option.

But regeneration boss Councillor Paddy Bradley revealed the loan, taken out by the council, would not be “anywhere near” the £25million maximum being considered. The council wants to use the cash to help fund the £300million shopping complex, currently shelved after losing half its financial backing.

The Summer Row development would be anchored by Debenhams and Marks & Spencer, but has been on hold since a crucial funding deal with three Irish backers collapsed in December 2008.

Developer Multi has spent months trying to secure half of the cash, about £150million, to allow it to go ahead. One of the options being considered is a council-backed bank loan.

Councillor Bradley said after the meeting: “We might be allowing them to arrange a loan but it will not be at any risk to us. There’s a lot more work to be done. It won’t be anywhere near £25million.

“There’s no figure yet, we haven’t got that far.”

Last December, a troubleshooting firm of consultants from Ernst & Young was appointed to get the project back on track.