THE next Government must ensure actions speak louder than words, according to North-East business leaders, who gave a lukewarm reception to the Chancellor’s Budget.

Mr Osborne was praised for removing national insurance payments for under-21s and abolishing the annual tax return.

But he was criticised over a lack of action on business rate reforms and Northern transport links, and was once again accused of slanting his much vaunted Northern powerhouse too far towards the North-West.

However, Mr Osborne did receive support after announcing £1m plans to strengthen the region’s chemical sector through the Centre for Process Innovation (CPI).

Ministers say the organisation, which has bases at Darlington, Wilton, near Redcar, Sedgefield, County Durham, will work with companies to help improve products.

Nevertheless, Ross Smith, North East Chamber of Commerce director of policy, said more was still needed.

He said: “The Chancellor made several positive announcements, with the elimination of national insurance payments for under-21s and the abolition of the annual tax return making life much easier for smaller businesses.

“But while there have been promises made around business rate reform, annual investment allowances and Northern transport, we are yet to see action.

“Actions speak louder than words and these issues need to be addressed as a matter of urgency by whoever is in the Treasury after the election.”

Speaking to The Northern Echo last year, Mr Osborne said the North-East has a significant place in his plans to create a Northern powerhouse.

However, Mike Matthews, managing director of car parts maker Nifco UK, based in Eaglescliffe, near Stockton, said the Chancellor had fallen short with his promises and forgotten the North-East’s strong export prowess.

Mr Matthews, who grew up in the Branksome area of Darlington, said: “Mr Osborne seems to be very much focused on developing a powerhouse out of Manchester.

“It’s disappointing he cannot see past there from his vantage point in Westminster, and support a region that is the only one with a trade surplus, and one that is making its name internationally as a hub for manufacturing.

“However, there were some positives, and I was encouraged to see the national insurance changes.

“Anything that can be done to support businesses investing in the next generation has to be good news.”

Douglas Kell, director of the North-East Civil Engineering Contractors’ Association, however, also pointed towards a skewed Northern powerhouse.

He added: “For all Mr Osborne talked about a powerhouse, there is no mention of how the North-East and its many needs in infrastructure might benefit.

“The creation of housing zones and help for first-time buyers will stimulate housebuilding, which is good.

“Otherwise, there is not even assurance funding needed for ongoing work on roads and other transport development earlier announced will still be forthcoming.”

But the Chancellor did find an ally in Nigel Perry, chief executive at CPI, who said its £1m financial package would deliver great benefits.

The cash is designed to increase innovation across the chemicals industry, which is one of Teesside’s largest employment sectors, by helping firms prove products and processes are commercially viable before they lay out substantial investments.

Mr Perry said: “Over the last ten years, our specialist expertise and capability has been proven, repeatedly, and we understand exactly what is needed for successful innovation to take place.

“This new investment will help us to deliver further value for the Industry and for the UK.”

The support for CPI is yet another example of the Government backing the organisation.

Late last year, Mr Osborne announced almost £90m will be spent on two new centres of excellence in the region.

Netpark, in Sedgefield, will become home to the National Formulation Centre, which ministers hope could lead to 12,500 new jobs across the UK, when it opens in 2016.

Operated by CPI, it will be the headquarters of a national research and development network to develop life-changing products, such as washing detergents that can be used without water, lubricants to make engines run faster, and breakthrough medical treatments.

A second development in Tyneside will work on ways to support people in old age.

Those proposals come as CPI readies itself to this year open the £38m National Biologics Manufacturing Centre, in Darlington’s Central Park, to support research and develop on potentially life-saving cures and vaccines.

It is also working with the North East Local Enterprise Partnership on plans for a National Centre for Healthcare Photonics, again at Netpark, which bosses say will develop light-based cancer treatments and allow firms to scale-up specialised treatments for skin cancer and eye disease.

That is expected to open in 2017.