The Government will "protect" Newcastle Airport if the Scottish Government slashes air passenger duty when further powers are devolved, Chancellor George Osborne has vowed.

Mr Osborne was asked what would be done to protect Newcastle Airport from potentially being undercut if Holyrood effectively cuts ticket prices by lowering taxes.

The SNP has long campaigned for reduced air passenger duty and routinely moves amendments to the Budget in a bid to secure the move.

At Treasury questions in the Commons, Labour MP Stephen Hepburn (Jarrow) said: "You will be aware of the importance of the success of Newcastle International Airport and the need for successful businesses to plan ahead.

"You will understand the threat it feels when there is a possible cut in air passenger duty north of the border.

"Will you give an assurance now to the business of Newcastle International Airport and potential businesses they go out to that we will match any cut north of the border?"

Mr Osborne said: "You raise a serious point and there is agreement across the political divide that devolution of air passenger duty to Scotland raises the potential for a real pressure on, particularly, airports in the North East of England but also Manchester Airport, which is partly in my (Tatton) constituency.

"Of course we have to see those powers devolved, which they will be, we will have to see what the Scottish Parliament does with those powers.

"But you have my assurance we will work together to make sure the impact is minimised on the North East, if that turns out to be the case, and we will protect regional airports in England.

"I think this is something we have a couple of years to work out, it is not something that has to be done tonight or tomorrow. But we can work out a plan that protects the brilliant Newcastle Airport and Manchester Airport and other regional airports."