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Armed police shot and wounded a man through a taxi window after he ignored warnings to get out of the vehicle, a witness has said.

Durham Police said it responded to reports of a man carrying a handgun in the James Street area of Bishop Auckland at 10:46 BST.

Shop owner Jared-vinder Singh said he dialled 999 when he saw a man in his shop loading a weapon.

A 23-year-old man has been arrested in connection with the incident.

Witnesses said before the shooting, a man entered a nearby workingmen's club and asked to be served alcohol.

He left when staff refused and went into Mr Singh's shop.

Mr Singh said: "This man just looked like a normal customer, but he went into a corner and when I looked I could see he had an automatic gun and was loading it.

"I was totally shocked when I saw the gun and thought he might hurt me.

"Then all of a sudden two customers came in and it looked like he changed his mind and went out. He had a taxi waiting outside. Then I rang the police.

"I think I was lucky there."

A Durham force spokesman: "Police were called to Bishop Auckland after reports that a man had been seen in the area with a handgun.

"The Independent Office for Police Conduct has been informed of the incident and we will be supporting the IPOC investigation."

The IPOC said what appeared to be a firearm had been recovered from the scene.