A £3.7m regeneration scheme to transform the fortunes of Spennymoor town centre has been backed by Sedgefield Borough Council's cabinet.

Work on the first phase of the five-year plan, which involves improving the western entrance to the town, is to start early next year.

The economic viability of the town centre has declined sharply over the past ten years, with several empty shop units. A recent investment in Festival Walk has led to an improvement over the past year, but the town centre continues to suffer.

A report to the council's cabinet said: "Spennymoor is now in a fragile state. The economic retail base of the town centre needs to be strengthened to maintain the momentum of the improvement."

The first phase of work will focus on improvements to the town's western gateway (Clyde Terrace and High Street), which is expected to start before the end of the financial year.

The scheme will include resurfacing, improved furniture, artwork and landscaping.

The rest of the renewal programme will be completed through a rolling programme and includes upgrading the High Street, improving the eastern gateway, closed-circuit television camera installation, improving pedestrian links to the town centre and a shop improvement scheme in Festival Walk.

The report said: "Investment through the programme will build confidence in the town centre by upgrading its environmental quality, making it more accessible, safe and secure.

"It is anticipated these measures will improve the image of the town, strengthen the local economy and generate further investment."

Much of the money for the programme, about £2m, is expected to come from the County Durham Single Programme Major Centres initiative.

The rest will be contributions from the borough council, Durham County Council, Spennymoor Town Council and property owners.

An expected contribution of £700,000 from the previous owners of Festival Walk may not be forthcoming, but members have been assured the improvement work will go ahead.

Cabinet member Councillor Bill Waters said: "This is long overdue for Spennymoor. I am very optimistic we can make these improvements without the £700,000 from the Festival Walk owners if need be.

"It will be a wonderful boost for the residents, traders and workers of Spennymoor."