SHADOW Chancellor John McDonnell said Labour plans to invest billions into the North-East to help the region combat the impact of Brexit, and undergo a manufacturing renaissance.

Speaking at the party's regional economic conference at the weekend, he said if elected, Labour would pump £1.4bn into the region's transport infrastructure and invest in the smaller towns and cities which had been "overlooked".

But he came under fire from political rivals who said there was "no prospect whatsoever" of Labour returning to power in 2020.

Labour's plans to rejuvenate the region include:

  • £400m for rail services in the Tees Valley, including electrification of the Northallerton to Teesport line and improvements to Darlington and Middlesbrough stations;
  • £300m to reopen the Leamside line, linking Durham to the Tyne & Wear Metro;
  • £110m to support the Teesside Collective to create a clean-energy industrial hub and helping the region become world-leader in carbon capture and storage technology;
  • £50m pledge to start the Metals Catapult Centre, to accelerate new metal technologies towards full, commercial use and creating a "sustainable steel industry" for the future, securing jobs;
  • A plan to deliver jobs and prosperity to the smaller towns and cities which he said had seen their potential "squandered" for twenty to thirty years.

He said said after Brexit the North-East needed a new vision which could unlock £20bn in economic potential, helping to create 60,000 extra jobs.
"Not my figures," he said, "But the careful estimates of Transport for the North. The economic potential here is huge."

He said Labour would oversee the greatest transfer of power to the North of England since the industrial revolution.

However Chris Foote-Wood, the Liberal Democrat candidate for Tees Valley Mayor, said: "As usual, John McDonnell paints a picture of how wonderful life would be under Labour. Unfortunately, with Jeremy Corbyn as leader, there is no prospect whatsoever of Labour returning to power in 2020.

"It is essential that the new devolved system for the Tees Valley works on an all-party basis. If it becomes a Labour party monopoly, as McDonnell portrays it, it will not work.”