Kingston's new theatre will open in September next year if a council plan to loan it around £3million is approved next week.

The money, combined with an extra £500,000 from Kingston University, will allow building works to start within weeks to transform the empty shell in Charter Quay into a world class theatre.

A £3million deal with General Meditteranean Holdings, owned by Kingston billionaire Nadhmi Auchi, is also expected to be concluded in the near future.

The controversial plan to invest taxpayers money to get the theatre open is based on hard economics not an artistic pipe dream, according to the leader of the council, Councillor Derek Osbourne.

It is calculated the theatre will bring £11million a year into the borough once it has opened.

Council chiefs see the theatre as a central part of their vision for a revitalised Kingston, providing the cultural hub to complement plans radically to upgrade a large swathe of the retail town centre.

Combined with a planned new hotel with conference facilities, outstanding shopping and the proximity of Hampton Court, it is hoped the theatre will transform Kingston into an important tourist destination.

And in addition to the visitors, new restaurants, and jobs it will generate, proponents of the scheme are convinced the theatre will play a crucial role in rebalancing nightlife in Kingston widening the mix by attracting families and older people into the town at night.

They also predict that once it is open other potential backers will have the confidence to invest and the theatre can start repaying the council loan.

And if it did not open in the next year or so, confidence in the project could drain away, making it more difficult to attract investors.

This would mean that at best it would open as an inferior, and less financially viable theatre.

At worst it would stand empty for years to come, a potential magnet for vandals, and a symbol not of Kingston's vibrancy but of its failure to match action to ambition.

Coun Osbourne said this was a "window of opportunity" that had to be seized if the borough was to make the most of the opportunities presented by the theatre shell and the incredible experience and skill Sir Peter Hall is prepared to bring.

He said that at a group meeting of Liberal Democrat councillors had "overwhelmingly" backed the loan plan.

Responding to likely fears the deal will commit the council to pouring taxpayers' money into the theatre should it not prove a financial success, Coun Osbourne said: There is a risk, and we have weighed that up very carefully.

"But we can't stand still. If we do we will go backwards. A theatre of this standard is far more likely to be financially viable than any municipal theatre.

"The benefits the theatre will bring to Kingston are enormous."

Council chief executive Bruce McDonald said the council will borrow the money at a preferential rate and the interest charged will add around £250,000 to the council's annual expenditure reducing as the loan is paid back.

He said : "I look at the economic and social impact before the cultural impact. We are going into this with our eyes wide open".

Professor David Miles, Kingston University's pro vice-chancellor for external affairs and business development, said he was "absolutely delighted that this is happening".

He said the university was willing to invest at this point because it was confident financial structures were in place to attract donors and ensure the theatre actually opens.

Prof Miles said the theatre would improve the cultural life of the area, as well as Kingston's unbalanced nightlife, and give students the chance to develop theatre skills to an international standard.

The Council Executive committee will vote on the plan next Tuesday.