TRADE and Industry Secretary Stephen Byers last night continued his campaign to boost spending on the North-East by promising extra cash for the region.

Speaking at the North CBI dinner in Gateshead, Mr Byers said increases in spending on regional development agencies would be "based on factors such as the level of unemployment, business start-ups, and investment in research and development."

He highlighted the pockets of deprivation in the North-East, and across the country, as a major challenge for the Government.

"People can be living alongside prosperity, but are a million miles away from it," he said.