THE North-East has a significant place in the Government’s Northern powerhouse, Chancellor George Osborne has claimed.

Mr Osborne said the region is crucial to creating a stronger national economy.

Dismissing claims his powerhouse plans focus too much on making Manchester a Northern capital, he said this region can follow the Lancashire city’s example.

Manchester is due to get an elected mayor to hand local politicians more control over public spending, which is hoped will deliver more jobs and investment.

The Chancellor told The Northern Echo £290m road-building plans to dual the A1 to within 25 miles of the Scottish border and widen the A19 between Wynyard and Norton, near Stockton, proved the North-East was at the heart of the Government's powerhouse.

He also referred to his Autumn Statement, which revealed plans for a £20m Newcastle-based medical research centre to find ways of supporting people in old age, and a new National Formulation Centre, at NetPark, in Sedgefield, County Durham.

Ministers hope the Sedgefield site, operated by the Centre for Process Innovation, will create 12,500 UK-wide posts when it opens in 2016, by developing life-changing products, such as lubricants to make engines run faster and breakthrough medical treatments.

Mr Osborne said: “The North-East is absolutely important to the Northern powerhouse.

“London dominates more and more, and that is not healthy for our economy.

“We are investing here, you only have to look at the announcements we have made about the A19, the A1 and the innovation in Newcastle and NetPark.

“There are lots of examples of the Government backing the North-East and backing jobs here.

“People can see with their own eyes the job that we are doing and how unemployment is coming down.

“There is more work than there used to be and we are making sure the region gets our support.

“We need a Northern powerhouse to provide more jobs and opportunities.”

Mr Osborne previously revealed the agreement to give Manchester greater freedoms and powers through an elected mayor, which led to claims the North-West could end up monopolising the powerhouse.

However, the Chancellor, who last week visited Carillion Training Services, near Middlesbrough, as the firm announced plans for 5,000 new national apprenticeships in five years, said that wasn’t the case, adding the Government’s measures were working.

He said: “The North-East has the fastest-growing economic activity right now and we have seen massive investments, such as Hitachi and Nissan.

“If you look at the North-East economy, it is creating jobs faster than almost any other part of the country.

“People must ask themselves if they want to go with the long-term plan that has created jobs or go back to the chaos of the past?”