LABOUR’S leader hopeful Owen Smith has said he would invest £50bn in the North East as part of his “New Deal” for Britain.

Mr Smith was speaking at a rally for Labour party members in Durham City on Thursday.

The MP from Pontypridd is challenging Jeremy Corbyn’s leadership of the party, with both politicians due to attend hustings in Gateshead tonight.

Darlington MP Jenny Chapman, Durham City MP Roberta Blackman-Woods and Sharon Hodgson, MP for Washington and Sunderland West welcomed Mr Smith to the council chamber at County Hall in Durham City.

Mr Smith wants a £200bn “New Deal” for Britain, with £50bn of investment for the North-East.

He said: “The last nine months we have not been a powerful opposition to the Tories that have set about privatising the NHS, reducing investment in the North-East, increasing class sizes and has seen industry disappear from this part of the world and led us out of the European Union, jeopardising investment from Nissan in Sunderland.

“I’m saying if you want a powerful opposition to the Tory government and if you want a Labour government in waiting, if you want to see fair taxes and bigger taxes on millionaires in order to spend money on the NHS and different public services you need a different leader of the Labour party and I’m asking people to put their faith in me because I want to take Labour back to power."

Ms Chapman said: “I have no doubt whatsoever that Owen is the person who can reunite the party and turn us back into the real campaigning force we know we are, with the credibility, ideas and energy to make it into fact and the ability to reach out way beyond the base of people who already support the Labour party."

Dr Blackman-Woods added: “For me it’s all about getting back into government.”

On Wednesday GMB, the UK’s third largest trade union, came out in support of Mr Smith, who has also been backed by shopworkers union Usdaw and steelworkers’ union Community.

Mr Corbyn has been backed by Unite, the UK’s biggest union, the Communication Workers Union, rail unions and construction workers' union Ucatt.

Mr Smith added the party was having an “existential crisis” and feared it would split if Mr Corbyn won the leadership.

He said: “For me, and for lots of people it’s absolutely heartbreaking that we are at such a low ebb and that the party we love is in crisis.

“I don’t think Jeremy has provided the answers we need.”

He added: “The reason I’m so heartbroken is we have never felt more needed.”

“We have to fight back against the tide of right wing politics that is coming down the track.”

Darlington Labour Party will be holding a nominating meeting this evening to decide which leadership candidate to back.