Hopes are high that hundreds of jobs could be saved after the Government confirmed it would not be closing Mowden Hall.

The centre, which employs 400 people, is a major regional hub for the Department for Education and the Department for Business, Innovation and Skills.

Its future has been clouded in uncertainty since the Government announced plans the scrap scores of public agencies.

However, the town's MP Jenny Chapman said this afternoon that the Department of Business had confirmed it would not be pulling the plug.

Although the department only employs 20 of the 400 people at the centre, hopes are now high that the Department of Education will be staying put as well.

Ms Chapman said: “This is the result we all wanted – I am delighted for the workers at Mowden Hall but also for Darlington as the decision to keep government departments here will have a positive effect on the town.

“Business Secretary Vince Cable has made the right decision and I hope he continues to value the work of the North-East when making other important decisions that affect Darlington jobs.”