THE war against Iraq is quite rightly dominating Tony Blair's agenda. It is the biggest test of his leadership, and his premiership hangs on a positive outcome of the conflict.

But today's revelation that County Durham is facing yet more job losses is a reminder that there are very significant problems to sort out closer to home when the fighting has stopped.

TKA Tallent Chassis, formerly Tallent Engineering, confirmed last night that 94 more jobs are to be lost at Newton Aycliffe on top of 65 axed three months ago.

It is further evidence that the North-East is suffering more than most from the vagaries of the global economy and the manufacturing crisis.

Of course, it does not compare with the gravity of the situation in the Middle East and it is right that our Prime Minister's focus is locked on bringing the war to as swift a conclusion as possible.

But the loss of a livelihood is devastating enough and the North-East is leaking jobs at an alarming rate.

When the difficult and bloody business of removing Saddam Hussein has been completed, the task of finding a fairer way to invest in the most needy English regions must be placed high on the Government's agenda.

And that means here - in Mr Blair's backyard.