A SCHEME being pioneered in the North-East to clamp down on traffic jams, could save taxpayers £37.5m if adopted nationally.

Last week, minister John Speller announced that Middlesbrough and the London borough of Camden would pilot a scheme to charge utility companies for carrying out street works.

Ian Busby, highway manager on Middlesbrough Borough Council, said that if the scheme is a success it could bring in an extra £200,000 revenue for the council every year, and save millions every year if adopted nationally.

Under the scheme, gas, electricity, water and telephone companies will have to "rent" streets in Middlesbrough to carry out work - paying about £500 a day.

Revenue from the project will be ploughed back into transport schemes in the town. The aim is for the work to be carried out more quickly and cut traffic queues.

Mr Busby said that the council had found there were two main causes of delays to public transport - illegal parking on bus lanes and delays in utility work.

During the pilot, congestion will be monitored by bus company Stagecoach, which will run checks on whether buses are running on time.

The effect of traffic congestion on local businesses will also be measured to judge the success of the scheme, which is due to start on January 1.