COUNCILS in the region may be among the first in the country to be given new powers to help resolve grassroot problems.

Local Government Minister Nick Raynsford announced yesterday that new Local Area Agreements (LAAs) are to be piloted in nine areas next year.

The aim is to simplify funding, join up public services and give councils more flexibility.

They will be centred on three key themes - children and young people, safer and stronger communities and health and older people.

The Government is now inviting areas which would like to be one of the nine pilot zones to make their interest known.

In response to the announcement, Councillor John Davies, Durham County Council cabinet member for community development, said the Government's thinking mirrored his authority's own.

He said: "A key element of our proposals for local government reorganisation, in the event of there being a Regional Assembly, is the creation of a single all-purpose council working closely with local communities, town and parish councils and other key partners and services providers through newly-created Community Boards to put local communities at the very heart of local government decision-making.

"From what we know of the Government's proposals they could almost have been drawn up to run alongside our own.''

The county council, he said, will now consider whether to express an interest in becoming one of the nine pilot areas.