IT is as dry as old sticks and has possibly the most uninspiring name imaginable, but the Regional Spatial Strategy will impact on the lives of every man, woman and child in the North-East.

The 200-page planning blueprint determines how many houses can be built in each of the region's communities, which roads will be constructed, where wind farms will be allowed and where much-needed jobs will come.

An ambitious 15-year strategy, designed to build on the recent economic growth enjoyed in the region, was drawn up by the North-East Assembly in consultation with business and community leaders.

However, the initial strategy has since been tinkered with and watered down, firstly by a planning inquiry held last year and then by the Government, which has just produced a revised version of the document for further consultation.

Business leaders fear the changes have produced a flawed strategy in terms of meeting the region's aspirations for the 21st Century.

They also fear that the language inserted into the revised document gives the Government scope to kick prize projects into the long grass.

The changes proposed by the Government include:

* Limiting the NetPark development, in Sedgefield, to only 13 hectares, instead of the 49 originally envisaged, and blocking other greenfield developments, such as the Heighington Lane West industrial park, at Newton Aycliffe; the proposed media and film village, at Seaham; and the freight interchange at Tursdale, near Durham City, which would have combined to bring 20,000 jobs to County Durham.

* Removing a commitment to develop deep sea vessel facilities and associated distribution centres at Teesport, which would create more than 5,000 jobs, while improved rail links to the port, which were originally "required" are now only "desired".

* Watering down a concrete commitment to "prioritise major investment" and "support improvements" to the A66 Darlington bypass and a new Tees River crossing, to a vague promise to "investigate" the projects.

* Diluting a commitment to "upgrade" the East Coast Main Line power supply and key junctions on the A19 and A66 and replacing it with a weak promise to "address issues" in each case.

* Moving from a firm commitment to "support" the modernisation of the Tyne and Wear Metro and improvements to the A1 Gateshead Western Bypass to a proposal to "investigate" modernisation.

Andrew Sugden, policy and membership director at the North-East Chamber of Commerce (NECC), said that the region was enjoying a renaissance and added: "If we are to cement these changes and see a sustainable, ambitious region in the long-term we need a regional spatial strategy that truly reflects the ambitions of the North-East, its people and its businesses.

"Instead, the Government's proposals represent a watering down of this region's massive potential, and are a call for yet more studies, investigations and delays.

"The next few weeks are a crucial chance to address this paucity of ambition and provide the North-East with the levers it needs to succeed."

The Government has made some concessions to the region's aspirations, particularly on house-building to meet the expected growing population. However, rural parts of the region have not fared well, even on housing, with the document proposing an increase of only 1,030 houses a year in County Durham by 2021, compared with the 2,190 the county believes it needs.

Councillor Alan Cox, Durham County Council's cabinet member for business, planning and economic development, said the cumulative effect of the inspectors' recommendations - and the latest rewriting by Whitehall - threatened to put the brake on the ambitions of County Durham and the region as a whole.

He said it would also rob the county of the chance to meet the aspirations of its residents and the chance to make a useful contribution to the economic well-being of the region.

"Our concern has been vindicated by the loss of the proposed regional rail freight facility at Tursdale, south of Durham City, in line with the panel's recommendations. However, there remains a glimmer of hope, said Coun Cox.

"We welcome the Secretary of State's invitation to provide further information about committed investment and developer interest in three prestigious employment sites, at NetPark, Sedgefield; Heighington Lane West, Newton Aycliffe; and south of Seaham, before she makes a final decision."