THE Chancellor’s plan to kickstart the economy with a nationwide programme of road and rail upgrades is worth just £5 a head to the North East, researchers have claimed.

George Osborne’s hopes of rebalancing the economy away from London risk failure after it was revealed the capital will benefit by £2,731 per head over the next four years, far outweighing the help he is offering to any other part of the UK. The South East region surrounding London attracts spending of £792 per head, more than twice what is spent on the next region down.

The region’s dedicated think-tank IPPR North has gone over the transport figures behind Mr Osborne’s Autumn Statement to highlight the London-centric attitude behind the Government’s flagship economic plan.

It comes as the North East Chamber of Commerce sets out its wishlist for infrastructure improvements needed from next year, including extra transport investment.

But the region will have to wait until after 2015 to see any chance of achieving those aims on current spending timetables, with IPPR revealing almost half of major transport projects involving public funding benefit only London and the South East, accounting for 84% of planned spending.

This compares with 6% in the North of England as a whole and only 0.04% in the North East.

The figures are part of £40bn worth of long term work as set out on the Treasury website.

Many of these were included as part of a £30bn infrastructure promise which was made in the chancellor’s Autumn Statement.

Last Saturday The Journal revealed ministers had confirmed Metro revamp cash announced as part of the Chancellor’s national infrastructure plan was “not additional” to money which had been earmarked by the previous Labour government.

This £350m in Metro funding is not included on the Treasury’s “infrastructure investment pipeline” which lists the projects set to benefit following the Autumn Statement.

It is thought the Treasury also included the M1 through Yorkshire on the list as one of the main projects beneficial to the North East.

The IPPR said even if Metro cash was included the North East would still only benefit to the value of around £155 per head.

Ed Cox, director of IPPR North, said: “If the Government continue to use a system that reinforces the dominance of London and the South East we’ll all be worse off in the long run as the South becomes more congested while the North continues to fall behind in terms of growth.

“There may be short term gains to be made in the capital but if we want the UK economy to be firing on all cylinders there needs to be a focus on growth in cities like Manchester, Leeds and Newcastle.

“If the Government really wants to rebalance our economy then investment in infrastructure in the North would be a good place to start.

“After all, a National Infrastructure Plan should be just that – at the moment it clearly is not.”

Last night a Department for Transport spokesman said: “Infrastructure investment is key to growth, which is why we have announced £1.4bn of investment in local transport schemes outside London in the last month.

“We have previously made it clear that the Government’s long-term vision for infrastructure includes a high speed rail network connecting the North and South.

“However we cannot ignore the fact that London is the biggest city in the UK and a global capital supporting a large number of people who commute from outside the region.

“The Government’s strategy for transport investment will ensure the maximum possible economic benefit to the UK as a whole – this means investing in the regions as well as ensuring that our major cities are able to compete in the world economy.”

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