Durham receive redevelopment loan

Durham City Council has stepped in to ensure that the redevelopment of the Riverside at Chester-le-Street is not scuppered by the recession, by earmarking £1.25million of taxpayers' cash as part of a support package to help transform the venue as a key feature of the county's cultural revival.

The loan is expected to be paid back over 15 years at a commercial interest rate of 4.75%, with an initial two-year grace period. The council's decision follows a commitment from the development agency, One North East, to buy part of the ground to build a hotel.

"Durham County Cricket Club makes a very important contribution to County Durham's sporting and economic wellbeing and we are pleased to support the ambitions of the club," said Simon Henig, leader of Durham County Council. "We have approved a financial package that was important to the bid to guarantee international cricket to the region up to 2016."

The move is not without controversy, with a spokesman for the Taxpayers' Alliance telling the Evening Chronicle that the council had "no remit to act like a bank". However, Durham were left struggling after their promised source of funding dried up due to the recession, and Henig's executive team was entitled to take action to benefit the local community.

"The level of support and co-operation from our two key public sector bodies has been outstanding," said David Harker, Durham's chief executive.