A £4M plan to create the North-East's first all-weather horseracing track has been given the go-ahead.

Northern Racing, which took over Sedgefield Racecourse, in County Durham, almost three years ago, has been given permission to lay a new artificial surface which would allow racing to take place all year round.

Subject to approval from the British Horseracing Board, the first fixture on the new surface could take place next summer.

The scheme also includes redeveloping the stables, which are prone to flooding, and improving the parade and pre-parade rings.

The artificial surface will be created within the existing grass track and will add at least 50 extra race meetings a year. The racecourse already hosts 22 jump racing fixtures.

Sedgefield Borough Council approved the planning application yesterday, but not before hearing of concerns that the extra meetings will mean an increase in traffic problems.

Although there is ample car parking on the course, racegoers tend to park on streets and grass verges around the village rather than queue in traffic.

Councillor James Wayman said: "This is going to increase traffic tremendously. We can't get in, or out, of our village on race days.

"I think the traffic problem should be addressed before the development goes ahead."

But architects acting for Northern Racing said meetings on the all-weather track were expected to attract an average of 800 spectators, compared to 3,000 on National Hunt days, so traffic problems would not be as severe.

Northern Racing, owned by Sir Stanley Clarke, has a racecourse portfolio that also includes Newcastle, Uttoxeter, Brighton, Bath and Chepstow.

The company says the additional race meetings will provide a boost to the local economy, creating extra jobs at the course, increasing trade at the village's pubs, bed and breakfasts and hotels, and putting Sedgefield on the sporting map.

Councillor Jim Higgin, who has been visiting the course for 40 years, said: "When Stan Clarke bought the track there was a great fear among the residents that all he intended to do was run it down and build houses there. The fact that he has decided to spend a fortune to bring an all-weather track here allays those fears."

Meanwhile, Lord Zetland is pressing ahead with plans to create a £150m racecourse, theme park, casino, hotel and concert venue just outside Redcar, east Cleveland, to replace the existing racetrack. It is planned to open in 2006 if funding can be found.