Breaking news: New plan to save Circuit of Wales

Developers of the £357m Circuit of Wales say they have a new deal proposed to start construction within six to eight weeks.

The revised investment package has been put together with private investors Aviva but needs support from two local councils who have previously declined to be involved.

The Welsh Government on Wednesday said it would not underwrite the entire cost of the scheme but had offered to guarantee 80% of it.

In a statement, Welsh Government yesterday said it was open to further discussions on the plan for the 830-acres racing, industrial, education and leisure complex above Ebbw Vale.

The Heads of The Valleys Development Company chief executive Michael Carrick said in a television interview,

"These alternative arrangements will reflect a more balanced financial support package for both the public and private investment parties."