SPENDING watchdog the National Audit Office (NAO) is opening an office in the region.

The NAO, which has its headquarters in London, said yesterday that it was looking for a site in Newcastle large enough to offer a full range of services.

The organisation has a small office in Newcastle, but plans to move into larger premises by September and employ 90 staff there within three years.

A recruitment drive is already under way. The NAO is looking for graduate trainees, analysts and qualified auditors, with some jobs transferring from London.

Sir John Bourn, head of the NAO, said: "The larger staff body and the full range of expertise it possesses will contribute strongly to our work of holding Government to account for the way it spends public money.

"This is a significant step in the history of the National Audit Office and is proof of our commitment to being a truly national body."

The NAO in Newcastle will conduct financial audits and value-for-money studies on a wide range of Government departments and other public sector bodies.