THE prime minister sought to calm fears that he was “imposing” powerful mayors on towns and cities, in return for greater powers.

This week, the Chancellor signed a landmark devolution deal with Greater Manchester – covering transport, health, housing and the police – in return for a ‘metro mayor’, to run its ten authorities.

George Osborne then warned any city-region hoping for similar control over its own destiny must also accept a cross-border ‘Boris Johnson-style’ leader.

That raised the prospect of a single directly-elected mayor ruling from Durham to Scotland – the boundaries of the new North-East Combined Authority.

Mr Cameron argued strongly for “accountable” mayors, which made it “easier it is to devolve more money and powers”, adding: “Where you see mayors you see action.”

But he added: “We’re not imposing anything. It’s the councils of Greater Manchester that have come together and, with the Government, set out a new course for Greater Manchester.

“The council leaders have come together and said we want to take on this new approach.”

Mr Cameron also argued his Government had a strong record on attempting to close the North-South divide, long before his fresh pledges on transport.

He pointed to the Regional Growth Fund, ‘City Deals’ ‘Local Growth Funds’, local enterprise partnerships and the Northern Hub rail improvements.

And he said: “I don’t believe we have been late to this. I think you can see a consistent pattern of wanting to take the steps that will rebalance the British economy.

“Of course you have seen strong growth in jobs in the south of England and in London, but - if you look at where exports are growing fastest, where investment is growing fastest, at business start-ups - that’s often in other parts of the country.”