English Heritage announced the grants, worth £691,000 over three years, under its Heritage Economic Regeneration Scheme (HERS).

This cash will be spent on community projects in County Durham, Teesside and Newcastle.

HERS concentrates on employment-generating neighbourhood businesses, like high streets and corner shops.

Peter Bromley, director of English Heritage for the North East, said: "People in the North East value their historic environment, as it creates a sense of place and belonging and gives them pride in their local areas.

"We know that they want to see it nurtured and that they recognise its value as a resource for regeneration.

'Spiral of decline'

"The regeneration of disadvantaged historic urban and rural areas is at the forefront of English Heritage's priorities.

"By funding the repair and improvement of high street shops and the refurbishment of derelict buildings into new homes and businesses we can break the spiral of decline.

"Even small grants can make a difference, tipping the balance in favour of employment, new homes and investment."

The latest announcement brings the total pledged by English Heritage in the North East to £3.14m since the scheme began in 1999.

More than £200,000 will be spent on conservation schemes in Annfield Plain, County Durham.

The medieval town of Guisborough on Teesside gets £105,000 for repairs to historic buildings.

The Sandhill area of Newcastle receives £100,000 for works to 17th Century buildings.