Darlington'S booming business economy has earned it one of the highest Government grants in the country.

Darlington Borough Council was awarded a £653,000 grant - the sixth highest in the country - following the town's economic growth. Last year, the amount of business rates rose by £1.6m from the year before.

The grant equates to 0.95 per cent of the total rateable value of business rates in the borough. It will go into the council's central pot of money.

Councillor David Lyonette, cabinet member for economic development, said: "This grant reflects the hard work done in the past few years to develop business opportunities in Darlington and help existing firms to expand and grow."

A number of council schemes has made the town more attractive to businesses.

They include the Darlington Gateway Regeneration programme, which aims to capitalise on the town's position within the North-East such as its road, rail and air links.

One of the major economic successes is the Morton Palms office development with international engineering designers Whessoe Oil and Gas, which has prevented jobs going to the Middle East.

Argos Direct has also opened a warehouse, with 700 jobs, on the Faverdale Business Park. The former wool factory at Lingfield Point has also been redeveloped to house major firm Capita and other smaller companies.