COUNCILLORS are expected to release the second stage of money from a fund designed to soften the blow of 500 job losses.

Darlington Borough Council's cabinet is to consider releasing £300,000 from the British American Tobacco (BAT) legacy scheme next Tuesday.

BAT pledged £900,000 over three years to a legacy fund, administered by the council, when it closed its Rothmans plant in July 2003 with the loss of 500 jobs

The fund supports regeneration and job creation projects throughout the town.

In its first year, the fund helped 37 businesses join the world of e-commerce and helped launch the Darlington Advantage campaign.

The cabinet is being asked to release £300,000 for the project's second year.

The money would be backed up by £214,000 of private funding, £153,500 from the public sector and contributions from other organisations.

Plans for the second year include stepping up the Darlington Advantage campaign and investing in a Skills For Success project, which helps firms with workforce training.

David Lyonette, the council's cabinet member for regeneration and planning, said: "The legacy fund has gone a long way in helping local firms.

"I look forward to seeing the impact of the second year of investment and hope it proves as successful as the first."