A 5,200-job manufacturing hub has moved closer to fruition – but business leaders have called for ministers to deliver a level playing field across the region.

Prime Minister Theresa May yesterday launched the Government’s industrial strategy for a post-Brexit Britain, which includes £71.6m funding to create jobs and help North-East firms expand.

Mrs May’s plans, which she said will “shape a stronger future for the UK…and a better Britain”, include a £556m boost for the so-called Northern Powerhouse.

They also contain an overhaul of technical education and £170m to strengthen work on science, technology, engineering and innovation, though the Government has been forced to counter claims the plans are focused on too few sectors.

A significant portion of the North-East’s cash will support the International Advanced Manufacturing Park (IAMP), which is earmarked for land near Nissan’s Sunderland car plant.

Bosses previously said the 100-hectare site has the capacity to create more than 500 jobs every year from 2018 and boost Nissan’s supply chain, delivering hundreds of millions of pounds of private sector investment.

However, leading regeneration sector figures last night stopped short of fully welcoming the Government’s move, saying Whitehall must do more.

Andrew Hodgson, chairman of the North East Local Enterprise Partnership (NElep), was joined by Councillor Sue Jeffrey, leader of Redcar and Cleveland Borough Council, and the North East England Chamber of Commerce (NEECC) in his calls for Government to increase its backing for the region.

Mr Hodgson said: “This latest growth deal allows NElep to invest and drive forward the delivery of the IAMP, which is of importance not only for the North-East, but for the UK’s industrial strategy.

“(However), the Government has chosen not to back our full local growth fund bid, which is deeply disappointing and potentially damaging to our plan to grow the North-East economy.”

Councillor Jeffrey, who will stand as the Labour candidate in the forthcoming Tees Valley mayoral election, echoed Mr Hodgson’s concerns.

She said while the Tees Valley has received £21.8m from the Government’s local growth fund, the amount represents only a small step towards what the area needs.

She said: “It is disappointing the Government was unable to support in full the ambitious plans for economic growth set out by our combined authority.

“Yet again it appears the Tees Valley has been let down by London decision-makers.

“This must be the last time we stand in line for a handout, only to find it is less than we need.

“But I remain optimistic; with the devolution deal I believe we have a great opportunity to deliver our own Tees Valley industrial strategy.”

Jonathan Walker, NEECC head of policy, said it was important the Government didn’t focus too heavily on one area.

He added: “The North-East has strengths stretching from the automotive sector, to renewable energy, life sciences and the digital and creative industries.

“These strengths must be harnessed and we will continue to challenge the Government to give a fair funding deal to the North East.”

However, Middlesbroughborn Business Secretary Greg Clark said the whole region would play a crucial role in the Northern Powerhouse.

He said: “The North-East has a world-leading reputation in the automotive sector, chemical innovation and exports.

“Through our industrial strategy and investment in the Northern Powerhouse, we plan to build on these strengths and create new opportunities and jobs in other industries and sectors.”