A MULTI-MILLION pound revamp of the region's roads and housing has been pledged by ministers after critics claimed the North-South divide was not being bridged.

Deputy Prime Minister John Prescott yesterday unveiled a plan for a series of "growth corridors" which also aims to improve job prospects, schools and hospitals.

The renaissance blueprint for the Labour heartlands, known as The Northern Way, comes after Mr Prescott faced growing criticism that the communities plan for England he published last year concentrated resources in the South at the expense of the North

The regional development agencies covering the North-East, North-West and Yorkshire and the Humber will now draw up a shopping list of requests, due to be submitted in the spring.

A final document will be handed over in the summer - complete with the cost implications of new projects.

Mr Prescott, who announced the plan in a trip to Manchester, is yet to say exactly how much cash will be available, but funding will come from £22bn set aside last year.

The Northern Growth Corridor is designed to improve links between Liverpool and Manchester in the west to Leeds, Sheffield and Hull in the east and Newcastle and Sunderland in the north.

A £69m package to renew thousands of homes in Newcastle and Gateshead forms part of the plan, while three other councils in the region - Easington, North Tyneside and Castle Morpeth - will share £8.2m to improve parks and open spaces.

Businesses in North Yorkshire are expected to ask for road improvements, such as the dualling of the A64 between York and Scarborough.

Mr Prescott said: "There is new confidence and energy in many of our northern towns and cities.

"After years of decline, people are moving back."

Last year, he announced four large growth areas in the South-East, but largely ignored the North-East.

Terry Hodgkinson, Yorkshire Forward chairman, said: "A new Northern Growth Corridor would potentially transform under-performing city economies, boost connectivity and transport links, lever significant business growth and investment, create new jobs and skills for thousands of people and improve economic inclusion and housing for deprived communities."

Margaret Fay, chairwoman of One NorthEast said: "Further development work will be important in translating the high-level vision into practicalities and detailed policy and resource implications."