WEYMOUTH town centre is set to get a major boost with the abolition of stamp duty on properties worth up to £150,000.

The initiative announced by Chancellor Gordon Brown that the duty is to be scrapped on the sale of both domestic and commercial properties is intended to kick-start the property market and encourage inward investment.

The Melcombe Regis ward, including the Park District and much of the town centre, is to benefit from the scheme to boost some of the country's most disadvantaged areas.

The move will mean a saving of £1,500 for sellers of properties at the upper end of the scale and comes into force this Friday.

In his statement, Mr Brown said that in an effort to help the areas of Britain with the slowest growth and highest unemployment in the country the duty would be abolished.

Mr Brown added that in the Budget proper next year he would legislate so that from 2002 the £150,000 threshold would be raised significantly - or that the duty would be abolished altogether - for all commercial property sales within the qualifying areas.

The measure is designed to encourage businesses and families to locate in the area, helping to revive depressed property markets, promote enterprise and increase employment opportunity.

Melcombe Regis is one of the poorest areas in South Dorset and successive reports have highlighted the health, crime and employment problems facing residents.

Mr Brown also outlined plans for a Community Investment Tax Credit, under which private investment in deprived areas would attract an accompanying 25 per cent of public investment. Melcombe Regis will also qualify for this incentive which is intended to encourage new businesses to move to the area.

The initiatives were welcomed by council and community leaders in the area.

The Mayor of Weymouth and Portland, Joy Stanley, who also represents Melcombe Regis on the borough council, said she was delighted with the news.

She said today: "Anything that boosts the housing market and makes it easier for people to buy houses in the area has to be welcomed.

"A lot of people want to move to this area but there is very little social housing and if stamp duty is abolished it will stimulate the market.

"The measures should also help regenerate the area. Melcombe Regis has one of the highest rates of unemployment in Dorset so I am quite delighted that we are heading in the right direction."

Ken Whatley, chairman of the Waterside Weymouth Community Forum, which is dedicated to regenerating the Park District, added: "If it helps this area then it has got to be good news.

"I haven't had a chance to examine all the details yet but it looks like it could really benefit the area."

In a statement, Financial Secretary to the Treasury Paul Boateng said: "The Government is committed to providing economic opportunity for all and these new measures will boost enterprise and investment in Britain's most disadvantaged areas."

"The Community Investment Tax Credit will unlock new sources of capital, stimulating business activity in parts of our society suffering from acute deprivation."