THE North-East could have lost 50,000 jobs if the Bank of England hadn’t taken decisive action following the financial crisis, a senior figure has claimed.

Andy Haldane says “exceptional measures” to slash interest rates from 2008 removed jeopardy for some employers and stopped households losing thousands of pounds a year.

The Bank cut rates from five per cent to 0.5 per cent as the economic downturn bit, and embarked on a £375bn quantitative easing programme, which saw it print money to buy assets like Government bonds from private holders to stimulate the economy.

Officials have since trimmed interest rates to a record low of 0.25 per cent following Brexit uncertainty.

Mr Haldane, speaking at the Materials Processing Institute (MPI), based near Middlesbrough, said a lack of such action would have cultivated a contraction in gross domestic product – the value of goods and services made in a country – leaving every part of the UK a ‘Red Car’ region, where low skills and wages become ubiquitous.

He added any decision to pause changes would have cost seven factories the equivalent of Nissan’s vast Sunderland base, equating to 50,000 jobs.

However, Mr Haldane, whose family hails from the North-East, admitted monetary easing may have benefited some more than others, acknowledging the region’s 6.1 per cent unemployment rate means it is the UK’s jobless hotspot.

He said: “In the North-East, it is clear the temperature of the economy is not as high as you or I would wish and the closure of the steelworks was a further blow to Teesside.

“(But), in the absence of a policy easing, the unemployment rate would have been over ten per cent, or an extra 50,000 people out of work.

“That is the equivalent of losing nearly seven Nissan factories.”

However, Mr Haldane claimed there are “grounds for optimism” for Teesside, saying improvements to skills and productivity can be a catalyst for change.

He added: “In many ways, the North-East…could be seen as a ‘Red Car’ region.

“(But) productivity and jobs-wise, Teesside is one of the fastest-growing regions in the country.

“With support for skills and technology, the like of which is being provided at MPI, there are grounds for believing the glass is half-full.

“If that progress in Teesside could be replicated nationally, the UK’s fortunes really could be transformed.”

Chris McDonald, chief executive at the MPI, added: "Andrew’s visit is an important step towards ensuring the needs of industrial and business communities are reflected in emerging policies.

“The region has a lot to be proud of, a lot of successes to shout about, but also a lot more to contribute, in expertise and innovation to the UK economy as a whole.

"Under the right conditions, the regional economy can continue to grow and thrive, it is our job as business and industry leaders, to engage constructively with policy makers at all levels, positioning North-East skills and expertise at the vanguard of economic growth.”