A SUPPORT fund set up to help new businesses grow in Teesdale has received councillors' backing.

The scheme has been launched by GlaxoSmithKline (GSK), in the wake of its announcement that the company will axe 400 jobs at its Barnard Castle plant over the next two years.

GSK has teamed up with the County Durham Development Company to offer grants to companies wishing to start up in Teesdale.

The pharmaceutical company's Barnard Castle plant is one of its biggest worldwide. It hopes to create more than 100 jobs in Teesdale over the next few years.

Yesterday, members of Teesdale District Council gave their full support to the scheme.

Councillor Jo Fergus said: "I hope this helps companies start up and encourage business to grow in Teesdale.

"This is indeed good for Teesdale, but I'm sure the committee will want to keep up to date on this and I ask that the officers involved give us a full report at the next meeting."

The grants available are up to 50 per cent of the company's eligible costs, and only jobs with a foreseeable lifespan of more than two years will count as part of the job-creation target.