DURHAM City Council is planning to build a one-stop shop to put all its services under the same roof.

The Liberal Democrat-controlled authority plans to replace its ageing benefits and revenue office in Meadowfield.

The 70 staff will move to premises that will double as a one-stop office near the village's leisure centre.

The £2.25m scheme will be funded by developing land to build 100 affordable houses across the district.

The one-stop shop will follow the one opened at Coxhoe earlier this year, and will give residents access to all council services and those of other organisations.

These will include the police - who will have a section office - the county council, youth service Connexions, and a Citizens Advice Bureau.

Community services director David Marrs said the scheme would be funded through the development of council land, with lower-cost homes by the Durham Villages Regeneration Company, the council's joint venture with developer Keepmoat.

He said: "The existing Meadowfield offices are in the old Co-op, which the council acquired for temporary use in 1974. It's an old building with a very inefficient heating system and the roof leaks."

Mr Marrs said there was a need for cheaper homes, particularly for first-time buyers and young families.

The new offices are expected to be completed in February 2005 - a planning application will be submitted in January - and there are plans to create a one-stop shop on the ground floor of the housing department in Claypath, Durham City, in May.

The council leader, Councillor Sue Pitts, said: "It has taken some time to put the project together, but we wanted to launch it as soon as we could to maintain our emphasis of producing first-class customer centres.

"We are doing this in a way which will use the value of the land to provide this exciting new building, which will be customer-focused and energy-efficient."

Fraser Reynolds, cabinet member for the environment, said: "This project will see new housing to the value of £12m being built within the district. But, more importantly, we are reacting to the difficulties some families have of accessing the housing market by targeting the type of housing that will be built."