GEORGE Osborne has vowed to hold talks with North-East business and council chiefs to solve the bitter wrangle over an under-threat council masterplan.

Last week, Planning Inspector Harold Stephens left Durham County Council’s 20-year jobs and growth plan in tatters, calling it flawed, unrealistic and unsound.

Yesterday morning, at a business event in Stockton, former Newcastle United chairman Sir John Hall asked the Chancellor to help rescue the County Durham Plan, which aims to deliver 30,000 new jobs by 2030, build new homes, shops and offices, and two new bypasses, turning County Durham into what has been called 'an economic powerhouse.'

“The planning inspector has crucified this plan and we must find a way to save it,” said Sir John, the property developer who masterminded the MetroCentre shopping mall, near Gateshead.

Mr Osborne responded: “We have independent inspectors, so if I said was going to overrule them I think the courts would have something to say about it.

"But that doesn’t mean it is the end of the process, and I will sit down with you John, as well as local business and political leaders, and make sure we come up with a way forward because this is all about helping businesses to expand, create jobs and support the economy here.”

It is understood that these talks will take place before the council sits down with the Planning Inspectorate next month.

Mr Osborne was speaking during a question-and-answer session at the Nifco car parts plant in Eaglescliffe where he welcomed news that the firm had won a £50m 10-year deal to supply Ford. In front of an invited audience of about 100 business leaders the Chancellor outlined his economic plan for the region.

He said a future Tory government would add £6bn to the North-East economy by 2030, equivalent to more than £2,000 per person, and create 50,000 new jobs by backing the core strengths of the local economy such as Teesside's chemical process sector, manufacturing and exports.

There are proposals to extend the Tees Valley Enterprise Zone to include the oil and gas decommissioning industry.

Mr Osborne said transport would be a key priority, reiterating plans to improve the A1 and A19.

He said that ministers were looking at how the benefits of High Speed rail could reach the North-East, such as improving rail infrastructure so that trains could run at 145mph between Newcastle and York, and cut journey times to Manchester by up to a quarter.

Furthermore, the Chancellor said he would look into calls for English regions to set their own air taxes to combat a growing threat from Scottish airports, as well as regional devolution, but he fell short of giving any firm commitments.

As part of his whistlestop tour of the region Mr Osborne visited Newcastle, where he confirmed that a new University Technical College would be built, backed by Sunderland University and Accenture, to train IT and healthcare workers.

At Nissan in Sunderland the Chancellor said £1.4m of taxpayers’ money would be used to help train workers on the new Infinti car production line.

And against the backdrop of Lindisfarne Castle he said how investment in iconic attractions across the region would help to attract an extra 150,000 overseas visitors each year.