THE Government gave the go-ahead yesterday for a £2.6m investment in crucial transport schemes across the North-East.

The region has been awarded the cash under the Urban Bus Challenge project, set up to tackle deprivation and social exclusion.

On Teesside, a grant of £262,500 was given to the Stockton Shuttle project, which will operate a circular bus service at 15-minute intervals between the High Street and Thornaby railway station.

Bob Cook, Stockton Borough Council's cabinet member for regeneration, said: "A direct bus service from the station to the High Street will improve access for visitors to the area and will provide a link to other connecting bus services, serving the entire borough and beyond."

Community leaders in Darlington are celebrating after the town was awarded the largest grant of the 34 schemes across England to successfully apply to the Department for Transport.

The borough council secured just over £1m to meet requests from the Firthmoor and Red Hall Community Partnerships for direct bus links between the estates and the town's main areas of employment, retail, health care and Eastbourne sports centre.

New routes will also pass through the Central ward, Lascelles and Bank Top wards.

The Firthmoor estate has 9.1 per cent of its residents claiming unemployment benefit, while Red Hall has no local facilities and residents have to travel for shopping, employment and leisure.

Nick Wallis, the council cabinet member for transport, said: "The Government's three-year grant will provide much-needed access for people in some of the most deprived parts of the town. It has the potential to transform the lives of many people."

Other grants have been handed out to projects on Tyneside, including a service between deprived areas in South Tyneside and employment opportunities in Gateshead.

An award of £148,000 was made for two dedicated links to employment at Doxford Park, one from the residential areas north of the Wear and the other from the south of the river.