A NORTH Durham community is celebrating after plans for a new doctors’ surgery and library were given the go-ahead.

The £2.75m development on the site of the former junior and infants school on Ouston Lane, Pelton, near Chester-le-Street, was granted planning permission nearly two years ago.

But the project was placed in doubt after the new Coalition Government required that any new capital spend by health trusts had to first be proved to represent "true value" for money.

The County Durham and Darlington NHS trust has now been given the green light to go ahead with the proposals.

Durham County Councillor Jim Cordon, who sits on a steering group behind the plans, said: "The whole village is buzzing. This is tremendously exciting news.

"We have needed this facility for such a long time.

"As part of the development we will get £650,000 replacement library, which is part of the infrastructure of the health centre.

"Two GP’s surgeries will share the two-storey health centre building and it will have a new pharmacy."

He added: "To fit the new library out will require another £60,000, made up so far from my neighbourhood budget (£25,000) and a further £20,000 from the development company Prime."

Architect Neil Turner of Howarth Litchfield Architects said: "The new development, will contain a new surgery for Dr Tyson and Partners and a new library for the county council, a pharmacy and further medical facilities for the PCT.

"The developers Prime and architects Howarth Litchfield partnership have worked for many years with Dr Anita Turner of the surgery and Councillor Cordon, to make the project possible."

He added: "The building is called the Lavender Centre after the choices of colour to the building and the theme for the sensory garden.

"All the parties are extremely excited at the prospect of the project moving forward and look forward to opening in 2012."

A trust spokesman said the final agreement was expected to be endorsed this week.

Meanwhile, in preparation for the development a light-controlled point had been installed at the neighbouring Pelton Community Primary School.

And the community has a further £184,000 from the Urban Renaissance fund, which will be used to tidy up the entrance to the village.