ECONOMIC DEVELOPMENT FOR THE NORTH EAST OF ENGLAND

That this House believes that the Government is out of touch with the legitimate concerns of the North East business community; expresses its deep concern that the assets of the successful regional development agency, ONE North East, may be repatriated to the Treasury rather than the local enterprise partnerships in the region; is further concerned that matching regeneration funds of up to 180 million from the European Union to the region may be lost due to Government cuts which are highly unlikely to be compensated for through private sector contributions; notes the weak base of venture capital in the region which is partially illustrated by the wider lack of take up for a national insurance holiday for new small companies; further believes that these three factors combined amount to a triple barrier to regional growth for the region; and urges a rethink of the Government's economic strategy for the North East.