CITY leaders were today set to agree to plough millions of pounds into a power station that will provide cheap hot water and heating for some of Southampton's poorest people.

Members of the ruling Liberal Democrat Cabinet are due to decide whether to pledge about £250,000 to the scheme every year for the next 25 years.

The cash would pay for more than 3,000 homes in Millbrook to be connected to the revolutionary £40m heat and power plant that will be built next to the M271 at Redbridge Lane.

Critics say taxpayers' money should not be used to support the project, which will be run by private firm Nursling Generating.

City Council Conservative group leader Alec Samuels said: "The risk should not be carried by the public or the public sector. There are very substantial sums of money involved here.

"What could you do with £5m for the tenants in Millbrook? The answer is, a lot."

Peter North, project manager, said the scheme would slash bills for more than 3,000 residents in Millbrook - one of Southampton's most cash-strapped areas.

The average cost for unlimited heating for residents would be about £6 per week.

The council's contribution would come out of the budget already set aside for normal repairs and maintenance on heating systems.

Mr North added: "In the long run, the council will actually be saving money because the cost of maintenance under the new system is so low."

The rest of the cash will be raised by Nursling Generating and grants from the South East England Development Agency.

Southampton City Council leader Adrian Vinson defended the scheme, saying it would put the city at the forefront of innovation in sustainable energy.

Deputy leader and Millbrook ward councillor Peter Wakeford added: "This is a very, very big scheme and money has already been earmarked.

"This is another step to try to ensure the funds are in place to enable this to go ahead."