A LOCAL authority has warned a scheme to shape the development of the North-East could have devastating consequences for rural areas.

Teesdale District Council said the North-East Assembly's draft Regional Spatial Strategy could lead to rural and urban areas competing economically.

The strategy would reduce the land allocated for employment use in Teesdale, County Durham, by two-thirds, and reduce the housing allocation in the district by 800 houses over 16 years.

The council believes the plans could adversely affect regeneration schemes and would not enable Teesdale to sustain its population levels.

Although parts of the strategy were praised, the council's chief executive, Charles Anderson, said: "I have a great concern that most of the economic activity, housing provision and transport hubs are being sucked into the urban conurbations."

Senior planning officer Pat Graham also criticised the document as being urban-concentrated.

She said: "We have got to reduce the housing allocation, which will inevitably mean a reduction in population because we will not be able to encourage and attract people for new housing."

Malcolm Bowes, the assistant director of the assembly, said the document was still out to consultation and that any concerns would be taken into consideration.

He said: "It is very important to see the way the rural helps the urban and vice versa -the two go hand-in-hand.

"There are numerous policies and proposals in the strategy to support rural areas and to protect the environment of rural areas."

As part of the consultation, a public debate will be held at County Hall, Durham, from 6pm tomorrow.