LADS' magazine Loaded has been forced to pay up for stealing a scarecrow dressed as a policewoman from a North-East village.

The prank led to angry calls from residents of Middleton-in-Teesdale, in County Durham, for police to take action against the magazine for theft.

The scarecrow, called Nancy, has been responsible for a dramatic drop in speeding since it went on patrol.

Nancy's creator, Stella Anderson, intended to donate any prize money to Middleton-in-Teesdale village carnival if she won the scarecrow competition.

But Nancy's theft meant she was ineligible to be entered in the competition.

Now Loaded has promised to donate £200 to the carnival committee following the prank.

Nancy hit the headlines around the world after it was revealed motorists were slowing when they passed, believing her to be a real traffic police officer.

She also attracted the attention of vandals and had to be repaired after having her head knocked off.

Loaded editor Martin Daubney said: "We were very worried that Nancy was in grave danger of being vandalised or being stolen.

"She had become the nation's number one beer trophy, so we decided to save her from a grim death."

Nancy was taken on a sightseeing tour around London and attended a celebrity party, where she reportedly attracted the attention of Big Brother contestants, boy-band Busted and ex-EastEnders actor Dean Gaffney.

Mr Daubney said: "She's the world's most famous scarecrow. Next month, she will guest-edit the magazine. Even Worzel Gummidge cannot say he did that."

Mrs Anderson was surprised to hear what had happened to her scarecrow. She said: "My friend saw them take it and said they were very quick. It was sort of scary, as it happened in broad daylight.

"The police have to be commended for getting it back."

Inspector Kevin Tuck, of Barnard Castle police, said it was unlikely that charges would be pressed as the magazine had promised to return the scarecrow and reimburse Mrs Anderson.

He said: "We are treating this as a prank as there was no intention of permanently depriving her of the property, and we understand the publishing company is to make some sort of gesture."

John Cronin, treasurer of Middleton-in-Teesdale carnival, said residents initially thought Nancy had fallen victim to local vandals but were glad to hear that she was safe.

He said: "There was some vandalism going on at the time with other scarecrows and it was a bit disappointing when she went.

"I think people will get the joke round here - as long as Loaded come up with the money."