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A project bidding to reopen a disused railway line has secured £350,000 government funding.

The Leamside Line would connect Pelaw, in Gateshead, to Tursdale, in County Durham, and the money is to be used for a "strategic outline case" for the southern section between Washington and Ferryhill.

Gateshead Council leader Martin Gannon said he was glad the government had "finally decided" to support the £1bn project after previously issuing "confusing" messages.

The Department for Transport (DfT) has been approached for comment.

As well as returning train services to communities left without any since the 1960s and offering a raft of new connections across the North East, it is hoped the line would also help free space on the East Coast Main Line by providing an alternative path for slow-moving freight carriages.

The line was initially included among pledges made by the government as part of its using funding reallocated after the scrapping of HS2's northern leg in October.

But the promise was dropped within 24 hours and the DfT later said the project could be part-funded by cash given to the incoming North East mayor.

Mr Gannon, chair of the North East Joint Transport Committee (NEJTC) which is made up of councillors from seven local authorities to develop transport strategies for the region, described the funding as "a welcome contribution".

He said: "I’m pleased that, after much procrastination, the government has finally decided to show some support for the work we are doing to reopen the Leamside Line.

"The Leamside Line is one of the most important pieces of transport infrastructure in the North East and its reopening will deliver enormous economic, social and environmental benefits to the region. It’s a no-brainer as far as I’m concerned.”

However, he added: “Despite rumours to the contrary, the government has not agreed to fund the reopening of any part of the Leamside Line.

"In fact on many occasions it has said the opposite – that the North East will need to fund the line’s reopening.

"Whilst I wholeheartedly disagree with this position, it is important to be honest and clear in the face of the government’s confusing and misleading Network North communications."

Transport North East, which delivers services on behalf of NEJTC, said a locally-funded scheme would continue to look at whether the northern section of the line could be used to create a £745m extension of the Tyne and Wear Metro through Washington.

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