BUSINESS leaders and roads campaigners last night welcomed news that the Government is poised to upgrade a 29-mile North-East section of the A1 to three lanes.

The long-awaited link, hailed as essential to the region's economic fortunes by development agencies, will see £263m of improvements made to the stretch of the Great North Road - between Bramham, near Wetherby, and Barton, near Darlington.

The expected announcement would be a shot in the arm for the region, which has been lobbying successive Governments for better motorway links since the early 1990s.

John Major's administration sanctioned improvements on the 13-mile stretch between Walshford and Dishforth, which opened in 1995.

However, Transport Minister John Watt then used the ceremony to confirm plans for similar projects - between Bramham and Walshford and Dishforth and Barton - had been shelved indefinitely.

However, campaigners vowed to keep up the pressure, with the North-East Chamber of Commerce travelling to London to tackle the Government on the issue as recently as March this year.

Yesterday, president John Irwin gave the news of possible success a cautious welcome.

"The chamber has been spearheading the region's 'Blue-Line' campaign, which is pressing hard for a three-lane motorway through to Tyneside - the lack of which is currently one of the biggest obstacles facing the regional economy," he said.

"We will, of course, have to wait and see what comes out of this announcement, but we would hope the Government is sitting up and taking notice of some of our transport needs.

"We will be very disappointed and concerned if there isn't provision demonstrating a strong Government commitment to the renaissance of the North-East economy.

"This is one of the stretches of the A1 which we have been targeting for major investment and improvement, but we still need to lobby to secure three-lane motorway all the way into Newcastle."

One NorthEast chairman Dr John Bridge said: "The A1 is a key route to markets, both within the region and beyond.

"Clearly, routes leading in and out of the region are priorities. We must continue to press for improvements to the A1 up to the Scottish borders, dualling of the A66, and other road improvement measures within our region."

A spokesman for the north-eastern office of the Confederation of British Industry, Steve Rankin, said: "It will be good news for jobs. Companies have been telling me it can be difficult getting goods in and out of the region and inquiring if it is worth their while investing here."

A spokesman for Yorkshire Forward said: "Anything which improves links between the North and the South has to be welcome.

"We have been striving for a balance between road and rail improvements across the Yorkshire and Humber region, but it has to be said that the A1 is crucial to the overall picture, so upgrading the road to motorway would be a positive step."

Gerry Passman of the North Yorkshire branch of the Country Land and Business Association said: "Nobody likes to see roads encroaching on the countryside, but we have to accept we live in a modern world where the car plays a major role, and roads like the A1 will be safer in the long run if traffic can move rather than sitting in queues belching out fumes."