KEY economic policies impacting on the region’s financial health face a withering assessment from influential MPs today.

In a new report, the Commons Treasury select committee has cast doubt on the impact of 21 new low-tax enterprise zones – including the two planned for the North East, in Tyneside and the Tees Valley.

The report will also warn that a £2bn tax raid on the profits of North Sea oil and gas, already heavily criticised by the region’s energy firms, is bad for business confidence and risks undermining the Government’s credibility on taxation.

Enterprise zones, lauded by supporters for offering opportunities for business start up and growth, might have “some effect,” the select committee said.

The new zones, the exact location of which have yet to be announced, will offer companies up to 100% discount on business rates, new super fast broadband and other potential tax breaks, although there will be a time lag and limits to the proposals.

The MPs added: “We note that almost all the evidence received is unsure about the extent to which they will contribute to UK growth. It is clear that there is still much to be done on the details of this policy.”

Concern over the oil and gas windfall tax has continued after major energy providers said they would review their North Sea investments.

Industry chiefs have complained there was no consultation before the levy was introduced.

George Rafferty, chief executive of North East oil and gas body NOF Energy, last month warned the region could be facing thousands of job losses if that threat was carried through.

The Treasury committee report has described Budget measures on energy prices, including scrapping of the fuel duty escalator, and introduction of a carbon “price floor” to encourage cleaner energy sources, as lacking “overall coherence” as a package.