PLANS for a major new office and restaurant complex in the heart of Oxford have taken a step forward after the city council agreed to spend £9.75 million on the project.

Oxford city councillors approved a budget on Tuesday evening to knock down and rebuild 1-5 George Street .

Early plans for the new complex suggest that floor space could increase to two-and-a-half times the current size.

The council hopes it will be able to increase the money it makes in rent from the current income of £212,600 per year to £630,000.

Current tennants ASK Italian restaurant, a chiropodist, a dentist and the Solutions luggage shop will all be leaving the site when their leases expire on December, 24.

It has not yet been revealed when the building work is expected to be finished.

The council will now also enter into negotiations with two unnamed commercial tenants with a view to leasing part of the building to them when it is finished.

A £4.25m budget for another unrelated plan, to refurbish Standingford House in Cave Street, off St Clements, was also approved by the council.

Formerly known as the Enterprise Centre, the 1950s building will be renovated to become a multi-let office and workshop space.