CALLS are being made to scrap a rule which could stop Government departments from relocating to some North-East towns and cities.

A shortlist of sites outside London and the South-East where departments may be moved is being examined by Sir Michael Lyons, one of the Prime Minister's key advisors.

But it only includes places with a population of more than 100,000.

That excludes Darlington, which has a population of 98,000, according to the 2001 census, and Durham City, which has a population of 81,000.

Durham MP Gerry Steinberg is urging the historic city be considered as a location and wants the 100,000 limit to be ditched.

He said: "The fact Durham is a small city has much to commend it, not least that it does not suffer many of the problems inherent in larger cities, including transport."

A recent study carried out for the Treasury by King Sturge, an international property consultancy, identified Darlington as a possible location for public sector departments.

But because of its 2,000 shortfall in population, the town is not being ranked in a league table alongside the region's main contenders - Newcastle, Sunderland, Middlesbrough, Gateshead, Stockton and North Tyneside.

Councillor John Williams, leader of Darlington Borough Council, said the town should be on a level playing field with other towns and cities.

"Quite obviously, Darlington is a special case because of our superb road links, our proximity to a burgeoning international airport and the fact that we are just two and a quarter hours from London by train," he said.

"We have a great workforce and to exclude us because of a figure like 2,000 is wrong."

Meanwhile, Ashok Kumar, MP for Middlesbrough South and East Cleveland, is to meet junior Cabinet Minister Douglas Alexander, to press the case for departments to move to Teesside.

He said: "We have excellent links to all parts of the country via the A19 and A1, fast rail links to London and an international airport in the middle of our conurbation. In addition agencies like One NorthEast and Tees Valley Development Company are also spearheading the need for local investment in IT Broadbent - a key requirement for 21st Century business - and something that will facilitate the work of a devolved civil service."