MINISTERS have been told they must prioritise spending on roads, power systems and tourism support in the North East if they are serious about re-balancing the economy away from the South.

Business leaders from the region have sent in their submission as ministers look at the second phase of their growth review.

The Department for Business has been told it must act now to help the North East economy, including giving consideration to a new round of road improvements, a change in the way the National Grid charges for energy and adjustments to fuel duty to help haulage firms.

As things stands, the North East Chamber of Commerce says, there are not enough incentives available to convince investors to look outside of the South East. In fuel alone, it is thought that each tonne of freight brought into or out of the North East delivers 18% more fuel tax to the Exchequer than the average for English regions, and 74% more than London, as a result of the distance from the capital.

Last year the region was told it would not be receiving any cash for vital transport upgrades, including improvements to the A19 either side of the Tyne Tunnel and upgrades on the A1 between Leeming Bar and Barton in Yorkshire.

It is thought the A19 junction work is of particular importance now, as the gridlock likely to come when both Tyne Tunnels are operational could undermine the enterprise zone status linked to sites along the route.

There is also a repeated call for changes to air passenger duty, giving regional airports such as Newcastle International a greater chance of competing for trade with London airports.

Last night Chamber president John Mowbray said: “We applaud the Government’s Growth Review because it raises the opportunity to really get under the skin of what is needed to deliver significant improvements in the UK economy.

“What our Growth Review submission illustrates is that there is a real opportunity to address one key area of Government policy – to re-balance the economy – by delivering a much more strategically intelligent programme of targeted investment in key areas.

“Getting the infrastructure right, such as the change in National Grid charges, will significantly increase the appeal of areas like the North East for companies looking to invest.”