A plan for Bishop Auckland could see major developments on town centre sites.

Consultants working for Wear Valley District Council have picked out areas for regeneration, including the Market Place, North Bondgate, Forebondgate and Finkle Street and the Newgate Centre bus station, which they found was largely wasted space.

Under the scheme, drawn up by Newcastle design group Red Box, the area around the bus station would be redesigned, releasing 90 per cent of the site for development.

With new shops, homes and leisure facilities in North Bondgate, an open space with outdoor cafs and market stalls on the Forebondgate car park, retail and leisure units in Finkle Street and improvements to unsightly buildings at the junction of the Market Place and Forebondgate, the northern half of the town centre would be transformed.

The strategy would improve car parking in the town and create better links with other parts of Bishop Auckland, including Auckland Castle, the riverside and the Bishop's Park. It could also restore two-way traffic in the Market Place, although this may be controversial.

Traders and residents joined Red Box for a workshop last summer and a full consultation with the public is planned.

Red Box says the strategy will boost tourism and business, but councillors feel some details will be controversial.

Councillor Barbara Laurie, the council's planning committee chairwoman, said: "This is very exciting and very interesting, but it is a mixture of the practical and highly aspirational. It is useful and will stimulate debate."

Forebondgate caf owner Sam Zair said: "The north of the town has lost a lot of trade since Asda moved out of the Newgate Centre, and these proposals could bring us out of the doldrums.

"We must look to the future and this is definitely a move in the right direction."