PUBLIC land which cost taxpayers £2.75 million will be signed over to rail bosses as part of a major overhaul at Crewe Station.

Cheshire East Council bought the vacant former Royal Mail depot in Weston Road last year, but has now agreed to hand it to Network Rail to spearhead a regeneration scheme.

Network Rail has secured £6.2 million in Government funding to pay for improvements.

It will now press ahead with plans to demolish the depot to make way for a 25-space car park, new station entrance, taxi rank and refurbished subway.

A commercial development adjacent to Nantwich Road will house new shops and cafes.

Planning permission for the project was granted last month, despite concerns over a lack of disabled access at the revamped site, and the cabinet has now agreed to sign over the land on a 99-year lease.

The council believes the project will kick-start economic growth in the town, but it has faced criticism for signing over public land for nothing.

Council leader Wesley Fitzgerald said: "It is a massive first step for Crewe in what will be a desperately-needed regeneration."

Roland Domleo, deputy leader and cabinet member for adult services, said: "Having this much money invested in Crewe has got to be good news and it is being invested as part of our vision for Crewe.

"Who owns the land does not matter at the end of the day."

Jamie Macrae, cabinet member for prosperity, added: "Locally, as it gains gravitas the developments will attract further inward investment and will open up as a gateway.

"It's essential that if we're going to get investment in Crewe that we have a first class facility."

Independent councillor Brendan Murphy said: "We are giving away a lot of land for nothing at a time we are under pressure and cutting costs and services. We could have sold it to a private enterprise to run a car park and put the money back into services for residents."

Crewe West councillor Peter Nurse said: "I believe the station is a major asset to regeneration and if we don't invest it will deteriorate."

Jo Kaye, Network Rail's route managing director, said: "The station is used by three million people a year and it has long been recognised that there is a need for additional car parking, because more and more people are choosing to travel by train.

"New retail outlets will bring even more people to the station for commuting, business and leisure travel, all of which will help grow the economy of Crewe."