A £2.45M extension to a travellers’ site was announced yesterday, with ministers insisting it was vital to prevent tensions with local people.

The money will be spent on refurbishing and expanding the site at East Howle, Sedgefield, County Durham, which has 26 pitches. No figure was provided for its expected new size.

There will also be small extensions to sites at Metz Bridge, Middlesbrough, which received £48,435, and at Mount Pleasant Grange, Stockton, which received £108,074.

In North Yorkshire, £344,000 will be spend on refurbishing sites at Burn, Carlton, Seamer and Thirsk.

The seven sites are among 36 across England that will be opened, refurbished or extended at a total cost of more than £20m, under yesterday’s announcement.

An independent review a year ago said ministers were correct to seek more official sites, after the number of illegal camps rose sharply when the Tories removed the need for councils to provide suitable locations.

The Government is believed to be offering £97m in grants over three years to help create homes for up to 25,000 gipsies and travellers.

The scheme aims to cut the £18m annual bill faced by councils evicting travellers from illegal sites, in what can turn into protracted court battles.

Ministers say people on the sites will pay rent and council tax and, in return, the councils will provide rubbish collection, water, electricity and other services.

Communities Minister Iain Wright, the MP for Hartlepool, said it would “ensure that gipsies and travellers have authorised, decent places to live”.

He said: “The problem of unauthorised camping and the tensions it can cause will only be tackled through sufficient provision of well-managed, authorised sites, coupled with effective enforcement action. Site provision helps reduce the need for enforcement action, which costs taxpayers around £18m a year, and makes it quicker and easier to take action where unauthorised camping does take place.”

Government figures released yesterday revealed there were 490 traveller caravans in the region when a count took place last summer, down from 549 the previous summer. Seventy-eight were on unauthorised sites.

There are 20 official sites across the North-East and North Yorkshire, the largest of which is the 39-pitch site at Mount Pleasant Grange.