Poundbury has contributed more than £330million to the local economy so far and will contribute a further £500million over the next 15 years, a report says.

The study carried out by Dorset County Council for the Duchy of Cornwall reveals that more than 430 new full-time jobs will be created at the urban extension by the time it is completed in 2025.

It has looked at the benefits brought to the local economy by Poundbury’s demand for goods and services as steelwork goes up on Queen Mother Square – the centrepiece of Prince Charles’ dream development.

Researchers have assessed the effect of Poundbury on the economy over the last 15 years and forecast the effect it will have over the next 15 years.

Some 121 new businesses that will spring up on the development by 2025 will contribute around £40million per annum in increased demand for local goods and services.

This is on top of firms which have re-located from elsewhere in Dorset, the report says.

The Poundbury Economic Impact Assessment found that the development, now in its second phase, currently adds £13million to the economy per annum.

“By the end of the project, Poundbury will be adding almost £20million per annum to the Dorset sub-region,” the report says.

Simon Conibear, Poundbury development manager, said Poundbury’s economic impact on the area is sizeable.

Speaking at a meeting of Dorchester Chamber of Commerce, he said: “It’s a major project that keeps a lot of people employed.

“The projection is that it will generate up to £500million. I think that’s a positive story in terms of a recession looming.”

Anne Gray, a member of Dorset County Council’s research and information team, conducted the study.

She said: “Poundbury has already has a positive economic impact and there is more to come.

“A long-lived project such as this is really important to the area both throughout the construction phase and in terms of the permanent impacts which will be felt in the sub-region.”

The report says that the county town will reap many of the rewards from Poundbury.

It says: “It would be reasonable to assume that the biggest economic impact is and will be felt in the immediate area, particularly Dorchester, in terms of employment for local people and business opportunities.

“The benefits will also be felt further afield as some people will commute to work at Poundbury and the suppliers of businesses on the development will not necessarily be located there.”

Developers have made provisions to lessen some of the environmental impact Poundbury will have, such as increased traffic levels.