PLANS for a new city centre bus station are in jeopardy after the Government turned down a funding bid.

The Eldon Square underground bus concourse, in Newcastle, was to be turned into a shopping mall, as part of the centre's £150m redevelopment, with a new bus station at Prudhoe Street.

Newcastle City Council had hoped its bid for funding would be announced as part of a £1.9bn round of Government grants, but was disappointed.

Council leader Tony Flynn said he was confident funding would be found.