Plans to restore Auckland Castle Park in County Durham have been scrapped after One North East's budget was slashed by £47m.

Although the agency will reprioritise £46m to provide immediate and direct support to businesses during the recession, the £10m scheme to regenerate Bishop Auckland town centre and the Auckland Castle Park restoration project can not be supported in the short term. Both projects relied on funding from One North East and Durham County Council to progress. The funding bid for Auckland Castle Park included the development of a new visitor centre, exhibition space, education facilities and an improvement of wildlife habitats. Work has already been completed in Bishop Auckland, such as Fore Bondgate and Theatre Corner, which was repaved and a bronze statue of comic Stan Laurel erected.

The regeneration agency One North East's director of Capital Development, David Cramond, said: "One North East has been through a rigorous budget setting exercise this year to decide regeneration priorities. Significant reductions in our funding mean that our capital budget will reduce by £47m over the next two years. "One North East has approved funding for a number of other schemes across the region. "Sites in County Durham include Durham City Market Place and Seaham North Dock. Other schemes that come forward will be assessed using the same, employment-focused criteria.