A £1.4M business centre that could accommodate more than 20 start-up companies has been given the go-ahead.

The centre will form the second phase of work at Innovation House, in South Church Enterprise Park, Bishop Auckland, County Durham, following the success of the first phase of office developments.

It is expected that the office accommodation will attract new ventures, corporate and university spin-outs and small and medium-sized companies that are already trading.

Regional development agency One NorthEast has approved the award of more than £750,000 through the County Durham Economic Partnership, which has been working with Wear Valley District Council to get the project started.

Other funding is provided through the European Regional Development Fund, Neighbourhood Renewal Fund and the council.

David Allison, One NorthEast's director of business and industry, said: "The approval of this second phase is testament to the success of the flagship development and the ongoing need to provide high-quality tailor-made accommodation in the area.

"Increased opportunities for self employment and community enterprise are important for the Wear Valley district and the wider region to continue to flourish. It will also help diversify the local economy by expanding the range of business support and training services available within the area."

The centre will have 26 business units and have services including broadband, a reception, kitchen, meeting rooms and presentation facilities.