RURAL communities across the North-East and North Yorkshire were thrown a £2.5m lifeline by the Government yesterday to pay for better bus services.

Under the Rural Bus Challenge, 58 projects across England are to receive financial backing totalling £20m, including nine winning bids from the region.

The money will be released in addition to current local government spending on transport.

The biggest winner in the region is County Durham, allocated £941,300 for new and improved services over the next three years, including:

* Teesdale will benefit from new bus and taxi services, including better connections to and from Darlington Memorial Hospital.

* In east Durham, more public transport will be provided to places of work, aiding job-seekers and people undergoing training in former coalfield communities.

* Scattered former mining villages in north-west Durham will also benefit from improved services.

County council cabinet member for the environment, Bob Pendlebury, said: "We've had a number of worthwhile projects on the drawing board for a while, but have lacked the funding to carry them out.

"We worked hard with our partners in preparing a strong bid and it's fantastic news that we have been successful and can now start on a range of schemes which will assist the county's rural communities."

Darlington will also get an extra £118,000 for better links, safer bus shelters (including closed circuit television cameras) and helping the over-stretched dial-a-ride scheme for disabled residents.

Hartlepool will get £135,000 in partnership with bus operator Stagecoach, to extend services to the villages of Elwick, Dalton Piercy and Greatham.

A council spokesman said: "We are very pleased to receive this money, which will help support a much-needed service."

In Northumberland, the Hadrian's Wall Bus will get an extra £129,000 to extend the service coast-to-coast.

The Friarage Hospital, in Northallerton, North Yorkshire, will get £114,700 for road improvements which will allow better access to the hospital.

Kirkby and Sicklinghall will benefit by £276,000 from a new rural minibus service, linking with other bus services south of Harrogate.

Another £400,000 is set aside for services in the Settle and Selby areas, while £372,000 will be provided for a minibus service in the Craven district, providing tourist services in the North Yorkshire National Park