Blackpool development control committee is being recommended to grant permission for Marston's brewery to bulldoze the Welcome Inn on Vicarage Lane, Marton.

Marston's says it no longer makes business sense to run such a large pub and wants to develop the site with housing and retail units.

Marston's says turnover at The Welcome has fallen 38 per cent over the last three years with profits down by 120 per cent.

In September the pub was put under new management, with former Blackpool FC star John Hills among the financial backers.

The team has a three-year tenancy agreement and has invested in improved menus, live entertainment and redecoration.

Mr Hills said they were hoping to turn the pub round but he did not want to comment further until after a meeting with the brewery.

The planning application, due before councillors on Monday, is for seven commercial units on the ground floor, and 15 flats on the first and second floors.

It is expected the largest unit would be leased to a small supermarket. Possible uses of other units are as a betting shop, off-licence, pharmacy, hairdresser and fast food outlet. The present pub would be replaced by licensed premises, about a third of the size of the existing Welcome Inn.

A report by planners says: "Marston's has judged the operation to be unviable and unsustainable. Replacement with a smaller establishment within the same use class is acceptable."