As he unveiled the first details of plans for changes at The Royal George Hote, he said the new shops would provide a boost to the town.

"We have already had interest from a number of prestigious retail organisations," he said.

"I think this development will help Knutsford compete more effectively with other retail centres."

Yesterday (Tuesday), it was not clear how many new shops would be built, but detailed plans are expected to be unveiled next month.

Workmen could be on site by August if Macclesfield Borough Council approve the plans.

"We are not going to hang around and the minute we get planning permission we will move into full swing," said Mr Hughes.

Traders have welcomed the news, but local historian Joan Leach gave a word of warning last night.

She said the character of the area and the listed hotel building - which dates to the 1600s - should be considered.

"The ballroom ought to be kept for functions and the ambience of the building should stay the same," she said.

Mr Hughes confirmed that the ballroom would not be broken up and said the company was working closely with a conservation officer.

"The previous owners have neglected it to a vast extent over the past 20 years and there are substantial cracks in the front of the building which we want to repair," he said.