CHANCELLOR George Osborne has vowed to push on with plans to build his Northern Powerhouse - but hinted parts of the much-vaunted drive may not work.

Mr Osborne made the admission at the Conservative party conference, hailing Tory plans to deliver more powers, jobs and transport improvements to the North.

The Chancellor’s speech came just hours after the North East Chamber of Commerce (NECC) revealed the tumbling oil price and turbulent global markets have stymied North-East businesses’ growth.

Speaking at the Manchester conference, Mr Osborne repeated claims of producing a powerhouse.

Touching on measures the Government has taken to feed the project, such as outside investment and cultural improvements, he said: “As great as our capital is, there is so much more to our country.

“I’m throwing everything I have got at it.

"I've brought new science here, promoted the arts here, backed transport links, brought investment from places like China here.

“I don’t know if it will work, but I do know if you don’t even try you’re bound to fail and I’m damn well going to try."

Mr Osborne’s speech followed the NECC’s announcement business growth had slowed in the third quarter, though its Quarterly Economic Survey did highlight increased hopes over export sales and orders for the next 12 months.

Ross Smith, NECC director of policy, pointed to the price of oil, global markers and a fall in public spending for the deceleration.

He added: “It is disappointing to see a slowdown in growth, but certainly not alarming.

“Confidence levels for the longer term remain high, but there are several factors affecting business at the moment.

“We have many members involved in the offshore industry who have been hit by the fall in the oil price, and our exporters are facing tough conditions across a series of global markets at the moment.

“Also, the public sector, which is an important customer for many of our members, continues to face spending cuts.”

However, Mr Osborne and the Government were criticised by steelworkers at Redcar, hit by the collapse of SSI UK, who picked upon his failure to mention the steelworks' demise in his speech.