PLANS to develop a centre for start-up businesses have received a funding boost.

Sunderland City Council has agreed a £3m contribution towards building a small business centre in Washington.

The council said there was an increasing number of business start-ups across Washington and Sunderland and the new units would help meet the demand for space.

The £6m Washington Managed Workspace scheme could help create up to 200 jobs and 20 businesses in its first three years.

The council is also applying to the European Regional Development Fund for a grant of up to £3m towards the project.

Last week, the Royal Mail’s business start-up barometer revealed Sunderland was leading the UK in the number of new businesses established in the six months to the end of August, when 125 businesses were created.