A BUSINESS centre built to nurture new ventures has been so successful that it is to be extended to meet demand.

Innovation House, at South Church Enterprise Park, near Bishop Auckland, was opened last year by Prime Minister Tony Blair.

At the time Mr Blair called it "a good example of local and central government, agencies and businesses coming together for the good of small start-up firms."

The £700,000 building, was built in six months with funding from the European Regional Development Fund and Neighbourhood Renewal funding and was seen as a symbol of the area's economic revival, offering the latest technology and support from neighbouring Wear Valley Business Centre.

Demand was so great for the 14-unit development that it was practically filled before it opened.

Now plans have been passed by Wear Valley District Council for a two-storey extension that will add another 26 units.

The units will make room for more growing enterprises in an area that is fighting hard to recover from hundreds of job losses that came with the closure of Black and Decker, Weardale Steal and Lafarge UK's cement works in Eastgate.

Leader of Wear Valley District Council Olive Brown said: "The extension of Innovation House is being created as a direct response to the increasing demand for high specification office accommodation within the Wear Valley District.

"As a council we are committed to developing a long-term sustainable economy within the district and to accomplish this we must provide the right sort of accommodation.

"With the Wear Valley Development Agency on site at Innovation House it provides the ideal location for small start-up businesses to establish themselves in an environment that is both professional and supporting."

The Innovation House site has 37 parking spaces but the plans allow for an additional 23 with an overflow car park for 50 cars.

Access to the extension will be from the entrance on Longfield Road. There will be soft landscaping to the west of the overflow car park.