Work on Cheltenham's Minster Exchange development moved a step closer after the first stage of the project was completed.

The development, which was awarded £3.5million via GFirst LEP from the Government's Getting Building Fund, includes a 2,000sq ft innovation centre which would house a Growth Hub, headquarters for Cheltenham Festivals and cafe plus community spaces.

The wider Minster Innovation Exchange project is designed to deliver co-working space and provide a purpose-built performance, event and community venue and act as a pilot for developments at the Cyber Park as well as improvements to the Cheltenham Minster grounds

And the project has moved a step nearer with a land swap at the adjoining Chester Walk and the town's St George's Road car park between Cheltenham Borough Council and Gloucestershire County Council.

The project is a joint venture between the borough council and Workshop Cheltenham.

Council leader Councillor Rowena Hay said: "Both councils have worked hard over the last year to secure the exchange of land to support Cheltenham's place shaping vision and economic recovery plan.

"We will see considerable enhancements to the environment and a new, vibrant quarter which will offer a significant boost to the economy.''

As well as providing a new home for Cheltenham Festivals to deliver a programme of events and a platform to support its education and outreach initiatives, the flagship scheme will bring to life an under-utilised space in the heart of the town's conservation area.

Workshop director Bruce Gregory said: "The Minster Exchange is a unique urban rejuvenation scheme that will enable a variety of activities and initiatives that will deliver positive economic, cultural, societal and environmental impacts for Cheltenham and its community.

"It will bring together high-growth companies in the cyber tech, digital and creative sectors on the one part and academia and the wider community on the other to create the ideal platform for organic growth, collaboration and serendipity to occur in one place."