THE North-East last night entered a new era in train travel after rail chiefs gave the go ahead to brand new services from the region to London.

The Office of Rail Regulation (ORR) said it was "minded to approve" Grand Central Railway's plans to operate daily direct services from Sunderland, Hartlepool, Eaglescliffe, Northallerton, and Thirsk to King's Cross.

The decision - likely to lead to a multi-million pound economic boost for the region and which will create up to 50 jobs - could see three times daily high-speed trains running by early next year.

But it was a massive setback for East Coast Main Line operator GNER, which at the same time saw its own plans to operate additional trains from Leeds to London rejected by the regulator.

It had bitterly opposed York- based Grand Central's application, saying that it would rob it of revenue and slice as much as £380m off its profits.

Last night Richard Allan, a spokesman for GNER, said it was astonished at the ORR decision to reject its plans and accused the regulator of a "lack of joined-up thinking".

However, the firm, which has indicated it could seek to negotiate the terms of its ten-year franchise with the Government, refused to comment directly on Grand Central's successful application.

Grand Central, which will share the East Coast Main Line with GNER as an "open access operator", received backing from MPs and passenger groups and has pledged a cheaper, simpler-to-understand ticket pricing structure.

Managing director Ian Yeowart said: "I am absolutely delighted that all our research, effort and single-minded determination have been rewarded by this provisional decision."

Ian Walker, North-East secretary of campaign group Rail Future, said: "This is excellent news for the North-East and for those places which don't have direct rail services to London

"It's come as a surprise. GNER has had a hold on the market to London for a long time, but this will bring added competition, which is a good thing."

Councillor Mick Henry, chairman of the Association of North East Councils, which lobbied on behalf of Grand Central, said it would provide a huge economic boost for the communities of Sunderland, the Durham coast and the Tees Valley.

He said: "The financial and social benefits of such a service, for all the communities affected, cannot be overstated."