ED Miliband today tries to calm anger about extra powers for Scotland by promising Labour will give the North-East the “muscle” to compete for investment and jobs.

In an interview with The Northern Echo the Labour leader said he recognised the “special circumstances” facing the region closest to an increasingly powerful neighbour.

Mr Miliband insisted he U-turned to help deliver further tax powers to the Edinburgh Parliament because it was “right” – not because of the rising threat of the Scottish National Party (SNP).

And, asked if he was taking the Labour heartland of the North-East for granted, while also preserving Scotland’s much higher funding, he replied: “No, not at all.”

Instead, ahead of a visit to the region today, Mr Miliband set out a five-point “pledge to the English regions”, to ensure Scotland – and the South – do not gallop further ahead.

And he said: “I accept there are special circumstances for the North-East

“Having listened to the voices of the people in Scotland, we have developed out position and we were right to do that – we were hearing people’s voices.

“We have got to do the same in the North-East, we have got to hear people’s voices about what needs to be done.”

In particular, Mr Miliband said he accepted the growing danger of a more-powerful Scotland poaching investment from the North-East, a big concern long before the new devolution package.

But he insisted it was not possible to “turn the clock back” by bringing back the regional devolution agency – a demand made by several North-East MPs.

Mr Miliband said: “We have got to empower the LEPs [local enterprise partnerships] so that they can fight for their area better than they can currently. We have got to put muscle behind it

“If we get local authorities and LEPs working together, it’s a powerful engine to attract business and have the muscle to do it – that’s a key part of the devolution plan.”

That five-point plan is:

* To deliver £30bn worth of devolution to English city and county regions – more than the Coalition is handing over.

* Stage a fresh consultation on going further on devolution – to develop proposals for Labour’s election manifesto.

* Fairer funding for the English regions - to “end the bias against poorer areas”.

* Action to ensure extra powers for Scotland do not hurt English regions – including regional airports.

* A ‘Senate of the Regions and Nations - to replace of the House of Lords.

On devolution, Mr Miliband said: “We are absolutely committed to it and we have set out what I believe are very exciting plans. And we do want to go further.

“The lesson of devolution in England is that you need local solutions to local circumstances. And, of course, the North-East faces particular circumstances.

“If I came long tomorrow and said ‘here’s the answer’, people may say that’s not necessarily the right answer. We’ve got to listen to people’s voices, so we have good answers.”

Mr Miliband was speaking after Labour joined the other parties in backing the Smith Commission’s radical proposals for Scotland to retain all income tax raised.

Gordon Brown had previously warned the plan was a “Tory trap” that would inevitably deliver ‘English votes for English laws’ at Westminster – strengthening the Conservative heartlands.

And there is particular anger over another U-turn that will give Edinburgh the power to cut air passenger duty, potentially undermining North airports.

Meanwhile, Scotland will keep the Barnett Formula which gives it £733 more per person than the much poorer North-East – a figure that has more than doubled from £361, in 2010-11.

But Mr Miliband urged the North-East to look beyond Barnett, saying: “There’s a massive inequality issue in England about how funding is allocated.”