A TOWN centre regeneration and housing plan has overcome its biggest hurdle by winning the approval of the Government's regional office.

The Government Office North East (Gone) approved a three-phase application for 270 homes, part demolition of an industrial estate and improved access to Locomotion: The National Railway Museum, in Shildon.

Sedgefield Borough Council's development control committee approved Theakston Estates' plans to develop land to the east of Spout Lane, on March 4.

But, because the proposals fell outside the borough local plan, they had to be referred to Gone, which has now told the council that it is satisfied with the decision to grant planning permission and will not be calling for an inquiry.

Gone said that the overall plan "uses the land for development in line with economic, social and environmental objectives to improve people's quality of life".

Borough council officers said the plan will help to meet housing requirements for the community and will deliver access by public transport to jobs, education and health centres, shopping, leisure and local services.

The developers want to build 270 houses and transform nine hectares of farmland between Shildon and Middridge village into community land with public art, play areas, leisure and horse trails.

The company also wants to demolish part of the former Direct Worktops factory, on the George Reynolds Industrial Estate, to provide a landscaped buffer zone.

They also intend to build a visitors' drop-off and collection point and improve access to Locomotion: The National Railway Museum.

Charlie Walton, head of planning services at the borough council, said: "This is good news for the continued regeneration of Shildon."

Chris Harrison, from Nathaniel Lichfield and Partners, which is representing Theakston Estates, said: "This is a scheme that we have been working hard on for more than a year. We have had a lot of interest from builders who are keen to start work on the new houses."

Residents from Middridge and Shildon had objected to the plans. People said that the communities would lose their identities and that the roads could not cope with the extra traffic.