A £120M business support scheme aimed at creating 3,500 regional jobs has been postponed as bosses seek to ride out General Election uncertainty.

The North-East Local Enterprise Partnership (NELep) says the launch of the North-East Fund has been halted as officials seek clarity over the future make-up of Westminster.

However, they have insisted the programme, which was formerly known as Jeremie 2 and aims to offer financial support for 600 fast-growing companies, has not been scrapped.

The delay came after local business leaders and their national counterparts called on politicians to put the country’s interests first after the shock election result.

Referring to the decision to postpone next week’s North-East Fund launch, a spokesman for the North-East Fund Company, set up to run the programme, said: “We have taken the decision to allow time for the newly-elected administration to be formed.

“Government and the European Investment Bank have assured us of their continued support for the programme, however, we want to make sure the new administration is fully briefed on this new fund.

“The postponement does not affect the North-East Fund moving forward as planned.

“As soon as the programme goes live, small and medium-sized companies will be notified immediately and funds made available to them."

Reacting to the election result, Andrew Hodgson, NELep chairman, said: “We will continue to work with all parties to achieve the best outcome for the region as the Government strives to secure the best deal for the UK.

“We remain committed to delivering the North-East’s Strategic Economic Plan, which has already created an extra 58,200 jobs in the local economy, and which will inform our response to future Government policy.”