Colchester is set to have an eight-screen Warner Bros multiplex cinema in the former Post Office building in time for the start of the new millennium.

The last but one cinema application on the table pulled out of the race last night, leaving only Warner Bros' ambitious plan for the Head Street building.

Councillors of all political parties unanimously granted planning permission for the development last November.

But since there were four other cinema operators also vying to build, a Government planning inspector was called in to hold an inquiry into which should be given the official go-ahead.

Gradually, other operators, including UCI and ABC withdrew from the planning inquiry.

And now only the Warner Bros plan remains.

This could mean that the state-of-the-art multiplex and themed pub - operated by a separate company - could be up-and-running within 12 months.

The Post Office site extends as far as Balkerne Hill's Roman wall.

It was bought for more than £2 million and the development, when completed, will be worth about £10 million.

Terry Sutton, chairman of Colchester Council's planning and transportation committee, said today: "At last it looks as if we will have a multiplex in Colchester which will also see the sensitive development of the Post Office site, keeping the frontage.

"It's good news for the town."

The inquiry was due to be held on April 27.

But a spokesman for the Department of the Environment, Transport and the Regions said today it would no longer go-ahead.

Converted for the new archive on 19 November 2001. Some images and formatting may have been lost in the conversion.