THE region’s universities will receive a pre-election investment boost as part of plans to create a ‘Northern Powerhouse’, the Chancellor has hinted.

George Osborne sought to stress that his flagship project aims to do more than improve transport links by hailing universities as “the jewel in the crown of these Northern cities”.

Speaking at a Westminster lunch, Mr Osborne picked out the “particular strength” of Newcastle University, widely recognised for its expertise in life sciences.

And he said: “We are looking at bringing great science and learning to our Northern universities.

“The jewel in the crown of these Northern cities is the strength of the universities and the strength of their teaching hospitals.

“And, in the Autumn Statement, we’ll have more to say about the investment we can make in that - and in the transport links.”

In the speech, the Chancellor made his strongest commitment yet to trying to end London’s dominance of the nation’s economy, if returned to Downing Street.

He described the capital as “an incredible global asset”, but added: “It’s equally true that London threatens to dominate our economy more and more if we don’t do something about it.

“I think we address it not by pulling London down as some would suggest, but by building the rest up. And that is what I am seeking to do with the initiative I describe as the Northern Powerhouse.”

But Mr Osborne made it clearer than ever that – in order to grab a Manchester-style devolution package – Northern areas must accept a cross-border ‘metro mayor’.

The plan has provoked controversy in the North-East, as it implies a single ‘Boris Johnson-style’ directly-elected leader for the new North-East Combined Authority.

And that would create a fiefdom stretching from County Durham to the Scottish border, bringing together seven local authorities.

Mr Osborne said it was “clearly the case when you look around the world” that directly-elected mayors delivered stronger leadership.

And, pointing to Manchester’s acceptance of a mayor, the Chancellor added: “I hope that is a lead that other metro areas will follow.”

The North-East is believed to be third on Mr Osborne’s list for agreeing devolution deals – after Manchester and West Yorkshire – with an announcement as early as next month.

Mr Osborne also revealed he would be publishing regional “long term economic plans” for each part of England, before next March’s final Budget.

He said: “I will be travelling across the country to set out those long term local economic plans for the different parts of the country and bringing it all together in the Budget before the general election.”