HEALTH minister John Hutton has given the go-ahead to a mental health shake-up in the North-East which is expected to save £500,000 a year.

The new trust - The Newcastle, North Tyneside and Northumberland Mental Health NHS Trust - will come into being on April 1, 2001.

Mr Hutton has agreed that existing trusts Newcastle City Health NHS Trust and Northumberland Mental Health NHS Trust, can be dissolved to set up the new, enlarged trust.

A spokeswoman for the Northern and Yorkshire NHS Executive said: "Setting up the the trust will save £500,000 in administration costs which will be re-invested in services."

Consultation over the merger received overwhelming support