Bishop Auckland traders are offering a free parking deal to encourage more shoppers to visit the town.

Businesses will give customers a 50p refund which is the likely cost of two hours' parking when charges are imposed in July.

The offer was the first decision taken by the town's re-formed traders' association at its inaugural meeting this week.

Wear Valley district councillors are expected to agree to the 50p charge next Wednesday, even though it is less than originally proposed and could cut income by £30,000 a year.

The compromise is backed by the Town Centre Forum and could spell the end of years of wrangling over Bishop Auckland's parking strategy.

Vet Paul Wilson, who suggested the 50p fee to the council last year, said yesterday: "This shows the value of working together. If we as traders can support each other and come up with constructive proposals like this, we can achieve a lot.

"I hope the council does accept this idea and we can begin a fruitful working partnership."

Parking charges will be set by Wear Valley's regeneration committee.

A report from regeneration director Bob Hope recommends a fee scale of 50p for two hours, £1.50 for three hours, a £2 daily charge and a £7 weekly ticket.

Almost 3,500 shoppers backed demands from businesses in the Newgate Centre for free short-stay parking during consultations.

John Docherty, the council's head of management support, said: "This is a brilliant example of common sense achieving a compromise between the demands of public sector finances and the needs of the traders.

"We have consulted, we have listened and we have taken the most amenable route that we can."

The traders' meeting heard that increasing the number of shoppers could attract national chains to the town.

The new association agreed to meet on Mondays every two months. The next meeting, on April 5, will hear a talk on the Disability Discrimination Act.

A £75,000 marketing and events campaign is under way and more businesses will be encouraged to use the Internet to boost sales.