Businesses in a community affected by the foot-and-mouth epidemic could be given a big financial boost after plans for a 40-pitch caravan park were approved.

The owners of Cragwood Caravan Park have promised to bring vital extra revenue into Ramshaw and Evenwood by expanding their caravan site.

Local residents and businesses supporting the plans presented a 30-name petition to Evenwood Parish Council, and Teesdale District Council has given the proposals its backing.

The area has been hit by a slump in tourism following the fuel crisis and the foot-and-mouth epidemic, but local businesses are now hoping the caravan park will boost trade.

Aradhana Devgan, who owns the Late Shopper newsagents and grocery store in nearby West Auckland, said a lot of the tourists might visit her shop to buy food.

She said: "It is great news and just what this area needs. The caravan park can now bring in touring caravans and the visitors will need food and cigarettes and other stuff, which they can pick up from local shops.

"I think the whole community will be pleased."

Local fish and chip shops and pubs are also expected to benefit from the increase in tourism.

A spokeswoman for Cragwood Leisure Limited, which owns the site, said a lot of work still needed to be done to get the site ready for next year's tourists.

She said: "There has been a static caravan site here for years, but a lot of work needed doing to it when we took it over. We are hoping to bring a lot of tourists and, hopefully, it will be a massive boost for the whole community."

There will also be a new workshop and shower and lavatory block on the site, which is open between March and October.

Local councillors have also welcomed the improvements and extension to the caravan site.

Councillor Raymond Gibson said that during the tourist season the caravan park generated £1,000 for the local Working Men's Club.

He said: "It is going to bring prosperity into the area and I think we should do all we can to make that area better."