SOME of the most deprived communities of north Durham are to receive £20m from the Government.

The money will be ploughed mainly into former coalfield and rural areas to improve the competitiveness of business, further develop the area's infrastructure and retrain the unemployed.

The grant will form part of a seven-year £47m regeneration package, with the remainder of the money coming from other Government sources.

The boost to the area was announced as part of a £128m package which will come to the region as part of the Government's Single Regeneration Budget (SRB) scheme.

Of the £20m, Derwentside will get £2,640,000, Chester-le-Street district £924,000, Durham district £1,056,000 and the Easington district £3,564,000.

The announcement was welcomed enthusiastically by community leaders.

Don Robson, leader of Durham County Council, said: "We have had to lobby hard for some years for greater recognition of the particular problems faced by communities in the county.

"This grant award, on top of the £26m award under round five of SRB, shows that the message has got through and that the Government is prepared to invest significant resources in helping us to improve the quality of life and opportunity in the area."

The programme builds upon the strategic approach to regeneration developed under the last major Government handout, SRB5, which secured £26.25m of SRB funding for the county.

A further £10.8m will go to Gateshead Metropolitan Borough Council to help regenerate the town centre during the next seven years.

"This is marvellous news," said Gateshead council leader, Councillor George Gill yesterday. "The regeneration of the town centre is not only important for Gateshead but for the whole region.