THE Government must back up its pledge to hand the North-East more powers if it serious about the area shaping its own destiny, business leaders have warned.

Bosses have called on George Osborne to give more information about the region’s place in the Northern Powerhouse, after it was omitted from the Chancellor’s Budget.

Mr Osborne revealed the Conservatives are working to devolve powers to Liverpool, Leeds and Sheffield, and confirmed Manchester will receive further control, including authority over fire services and employment programmes.

But the Chancellor made no reference to the North-East in his powerhouse promises, despite the Government previously appointing Stockton South MP James Wharton to oversee the programme in a move many saw as a commitment to the region.

Reacting to the apparent snub, Stephen Catchpole, managing director at Tees Valley Unlimited local enterprise partnership (TVU), said the Government must work with local officials to stop the region falling behind.

Mr Catchpole also reiterated plans to form a combined authority of five councils, made up of Darlington, Hartlepool, Middlesbrough, Redcar and Cleveland and Stockton, which would support plans to create thousands of jobs, attract new business and strengthen the area’s economy.

Speaking during the Budget Live event, hosted by TVU as part of its Tees Valley Business Summit, at Teesside University, he said: “There is a question of time.

“The timing issue is that these other places have been in and seen the Chancellor.

“We have put a proposal forward for a combined authority and that is being discussed.

“We are slightly behind, and we need to work hard so we aren’t left behind and Manchester steals a march.

“We have got to make sure all of the North reaches its potential, not just part of it.”

Gillian Marshall, chief executive of the Entrepreneurs’ Forum, echoed Mr Catchpole’s message, saying businesses would feel more assured if they were given fresh information on the powerhouse.

She added: “The commitment to do something is there, but, from a devolution side, we need to get our skates on.”

The duo did welcome other measures put forward by Mr Osborne, including a cut in corporation tax to 18 per cent by 2020, an extension to the Annual Investment Allowance (AIA), and the setting up of a new roads fund to improve routes.

Ms Marshall added: “The investment allowance is a key positive, but the corporation tax has to be the winner of the day.”

Ross Smith, North East Chamber of Commerce policy director, who was also speaking at the event, said he backed the AIA extension and the commitment to roads.

He added: “We are going to be working up a set of proposals for what we think ought to come next from a business perspective.”

The Budget Live event also included Alistair MacColl, Teesside University chairman and pro-chancellor, and Grant Peggie, director at British Business Bank Venture Capital Solutions.

The Summit featured 100 exhibitors and attracted nearly 1,000 delegates, offering presentations and workshops on areas such as supply chain opportunities and funding streams.