A COUNCIL will use a £560,000 business rates rebate from the Government to stimulate economic growth in its communities.

Sedgefield Borough Council was given the cash following two years of collecting increasing business rates for the Government.

Cabinet members agreed to use the money to boost the economy, increase the impact of community projects and react to redundancies or business closure.

Andy Palmer, head of strategy and regeneration, said: "We are delighted that Sedgefield will be able to benefit from an increase in business rates.

"We are also delighted that there are very few strings attached by the Government, so we can get the best value out of that money for this area."

About £300,000 will be used to plan and kick-start major spending projects.

That could lead to investment schemes being drawn up for the borough's four main town centres - Newton Aycliffe, Spennymoor, Ferryhill and Shildon.

Mr Palmer said: "It could be used to see what residents want to see to drive investment in towns, whether it is more housing, open space a different retail environment." About £100,000 will be used to support groups that have applied for grants through the council's Local Improvement Programme to carry out community regeneration projects.

A similar amount will be made available for marketing and promotion.

"That could mean marketing changes to an industrial estate to potential businesses or customers to make the most of investments," said Mr Palmer.

About £60,000 will be set aside to support companies or workers in case of closures or redundancies. The council expects the Government to top up the money with an extra £74,500.