REGENERATION chiefs are celebrating after moves to bring a college back to Cinderford for the first time in 30 years took a major step forward.

The Homes and Communities Agency has agreed to pay £2.5 million for the Five Acres site if Gloucestershire College want to move their Forest campus a few miles down the road to Steam Mills.

Principal Greg Smith, who only took over a month ago, now has up to five years to make a decision and find up to around £20 million if he wants a brand new building.

With three new builds under his belt and a history of linking them to regeneration schemes, many believe a future move to Cinderford is definitely on the cards.

The college news is part of a £4.5 million funding boost announced by the HCA to bring housing, jobs and improved educational facilities to Cinderford.

A second grant of nearly £2 million to the Forest of Dean District Council will allow councillors to buy the Ensors abattoir site in Valley Road for housing. Up to 100 new homes could be built on the site and a neighbouring one owned by Two Rivers.

Government spending cuts put paid to the original £14.75 million scheme for the town and many regarded Tesco pulling out as the final straw.

But regeneration chiefs believe they can still deliver piecemeal and the £4.5 million investment looks to set the ball rolling again.

Graham Morgan, chairman of Cinderford Regeneration Board welcomed the news and is confident it will mean a move for the college's 5,000 full-time, 10,000 part-time and 1,400 staff.

"I am absolutely over the moon," he said. "We always believed that we had to regenerate people and what better way to do that than through education.

"It's no good having empty factory units. If you invest in regenerating and educating people, then they can learn the skills needed to regenerate the area for themselves."

The college will now start work on an estates strategy, to examine the pros and cons of staying at the current Coleford campus, creating a new education hub in the Northern Quarter or building elsewhere.

Regeneration chiefs accept it will be hard to find funding for any new college but remain upbeat.

Councillor Patrick Molyneaux, the council's cabinet member for regeneration and planning, said: "We are very grateful for the financial support provided by the HCA and today's announcement takes us another huge step forward."

Gloucestershire College Principal Greg Smith told a meeting of Forest movers and shakers that he had already secured £37 million for a new Cheltenham campus, £20 million for one at Gloucester Docks and £7 million for a new education hub at Tewkesbury.

He said any fund raising would be "team work" and include contributions from the HCA, the county and district councils, Gloucester College and other sources."The Forest really needs this," he said. "We will be considering all of the options available to us in the district in order to proceed in the best interests of Forest of Dean residents, as well as those of our students and employees."

Ensors have already announced they will be moving to a new unit on the Forest Vale Industrial Estate, safeguarding 130 jobs and the local action plan for the Northern Quarter has been ammended to take into account the needs of the college.

HCA head of area David Warburton said education, employment and housing had always been the focus of Cinderford regeneration.

"These investments will enable partners to shape the futures of both developments in a way that meets the needs of local people and benefits the Forest of Dean. "I hope also that it clearly demonstrates our commitment to regenerating Cinderford."