TWO development agencies could merge in a move to improve business support across two dales.

Wear Valley District Council has called a meeting on Thursday to discuss plans that would bring Wear Valley Development Agency and Teesdale Enterprise Agency under one umbrella.

Both boards of directors have agreed in principle to the merger following a series of meetings held over the past year.

Teesdale's chief executive Shaun Stuart has been in charge of both organisations since Wear Valley's boss Paul Robinson left last year after less than 12 months in the post.

Chester-le-Street and City of Durham Development Agency conducted a review of the Wear Valley agency and its internal management and how it needed to change to cope with the increasing demands made on it.

A report to Thursday's meeting from Wear Valley council's regeneration director Bob Hope said that the merger should go ahead.

Mr Hope says the larger organisation would benefit businesses by offering a wider range of higher quality services than at present.

Companies would also have access to more advisors with specialist skills and expertise.

Clients surveyed about the merger were also in favour.

Mr Hope said: "The consultant's report concludes that a merger gives the opportunity to not only enhance the service offered but also to generate surplus funds to reinvest in the organisation. This would be better funded, viable and more sustainable in the long term, as well as better placed to cope with either of the outcomes of external funding and changes to the structure of local government."

The chairman of Wear Valley's regeneration committee, Councillor Alan Townsend, said: "Staff and councillors have followed the development with interest and they have been recommended to approve the merger on Thursday."

Mr Stuart said: "Both boards have taken a decision in a principle for a merger to take place, but obviously it needs more discussion and has to go through the committee.

"It would have an enormous benefit on businesses as it would be a new agency that has built on the success and expertise of two old agencies."