AN ambitious new redevelopment scheme could see the demolition of a 1960s "eyesore" in Durham.

Millburngate House, on the banks of the River Wear in the city, is likely to be pulled down if council chiefs go ahead with plans to transform the riverside.

The block was built with no need for planning permission to house the National Savings and Investments (NS&I) and Passport Office.

Both employers, who have more than 400 staff at the site have stressed there would be no job losses as a result of moving out of the building.

Plans, which are still under discussion, could see the NS & I move across the river to Freeman’s Reach, which Durham County Council plans to redevelop as a mixture of office and residential space. A Home Office spokeswoman stressed the Passport Office remained “committed to Durham” and added that no job losses were planned “at this stage”.

It is understood the planned demolition of Millburngate House would take place by 2014.

The proposal has been seen as a welcome move by families who believe the building is out of keeping with the grandeur of the Unesco World Heritage site, around the city’s castle and cathedral.

Cabinet member for regeneration at Durham County Council, Neil Foster, said: “There is now an opportunity to take this very significant site to the market to see how it can best be redeveloped and have a positive impact on Durham city centre’s regeneration.

“Sitting alongside Freeman’s Reach, this offers another important and prominent site for development.”