More than �360m is to be spent on roads, cycle ways and the creation of bus lanes.

Part of the cash will go towards dualling sections of the A1 north of Newcastle.

Other projects receiving cash include a park and ride scheme for Durham, and improvements to road routes in Stockton, Sunderland and Middlesbrough.

Transport Secretary Alistair Darling said the funding was "over and above" national road and rail schemes which will benefit the North East.

He said: "This funding will enable councils across the region to invest in the transport schemes needed to support their growing economies.

Local transport

"It will also help make local roads better and safer and public transport a more attractive and reliable alternative to the car.

"Today's announcement demonstrates the government's continuing commitment to investing in local transport in the North East."

Fully approved schemes include work on the A167 Chilton Bypass in Durham, Scotswood Road in Newcastle, the Sunderland southern radial route, dual tracking of the Tyne and Wear Metro, the Pegswood bypass in Northumberland and better access to north Middlesbrough.

Work on most of the projects should begin in April 2005.

Other projects already planned, include dualling of the A1 between Morpeth and Felton, improvements to the A19 at Seaton Burn and the A66 at Scotch Corner.