BUSINESS leaders in the region have welcomed a report from Lord Heseltine, which included a call for funds to back industry to be distributed locally, rather than through central government.

The former Conservative minister's review makes 89 recommendations to help industry. One of its key aims is to shift £49bn from central government to regional decision makers such as Local Enterprise Partnerships (LEPs).  The aim, he said, was to devolve power from Whitehall and re-energise the cities and regions capable of fuelling growth.

Paul Woolston, chairman of the North East LEP, said: "Bringing the levers of growth closer to those who understand the differences in local labour markets and local economies must make sense, and lead to better value for money.

"Lord Heseltine's report identifies the broad areas where the public sector should be getting involved. More importantly he also provides some very specific recommendations for further decentralisation of responsibility and power to ensure each economic area makes the most of its potential to grow. We await the Government's response with keen interest."

NECC Chief Executive James Ramsbotham said: “Lord Heseltine is spot on to say the UK needs to have a relentless focus on competitiveness, and is spot on to say that real competitiveness requires all parts of the country to fulfill their potential.

“We firmly believe the North-East economy is a huge asset that could and should be developed further. That requires national policies that take better account of regional differences, and more local control of our own destiny.

“It would be a huge missed opportunity if the response to this important report is to get mired in a lengthy debate over reorganising institutions. We need in the region to quickly get on with tackling the issues of infrastructure development, better procurement, swifter planning and growing exports which Lord Heseltine rightly identifies.” 

Councillor Iain Malcolm, Leader of South Tyneside Council and North East LEP board member, who hosted Lord Andrew Adonis today( Wednesday) as part of the Labour Peer's fact finding mission for the North East Economic Review, said: "The North East LEP is ready and able to play an even greater role in promoting the region's future, and Lord Heseltine is providing an opportunity for Government to reconsider some of the nationalisation of policy. For the future of the North-East and the UK more widely I hope they take up the challenge he has set."