COUNCILLORS have ordered an action plan to steer the long-term regeneration of a town centre.

Spennymoor town centre has faced difficulties brought about by factory closures and out-oftown shopping centres reducing local spending.

However, it was recently rated as one of the nation's most desirable places to live and more than 1,000 houses will be built in the area in the next decade.

Sedgefield Borough Council will commission the action plan, which will incorporate an extensive public consultation period and will become part of planning policy.

It is hoped that the document will help transform the town and help it meet the demands of the growing population. "When the area plan is adopted it will be come part of our local development framework," said Graham Wood, the council's corporate policy and regeneration manager.

"This means it would potentially support planning applications, unlike a master plan, which is simply a document we would use to identify where there might be opportunities."

Spennymoor is the second largest town in Sedgefield borough with a population of about 19,000. The main shopping areas are a traditional brick-built High Street and a run-down shopping precinct known as Festival Walk.

Festival Walk owners Ediston Properties had hoped to give the precinct a £1m overhaul but, unable to obtain public sector cash, it is now set for a £200,000 facelift.

Some improvements have already been made to the town centre's street scene with more than £1.5m already spent.

And last year saw the completion of a £2m international gymnastics centre at Spennymoor Leisure Centre, which is on a list of centres for training for the 2012 London Olympics.

Mr Wood said that the action plan would consider changing shopping habits and how retailers are affected by various trends, such as on-line shopping and major retail parks.

The plan brief has identified a need for a night time economy, including restaurants, familyfriendly pubs and urban housing in the town centre.

Mr Wood said: "We have seen some improvements made in the town centre in the past three out of four years, but now it is about making sure we have the right retail mix."