WITH the economy stagnating for the past three years, George Osborne faces a tough task demonstrating some tangible improvement by the next election.

However, the burden of responsibility for economic growth does not sit with the Chancellor alone.

The success of businesses will largely determine Mr Osborne’s reputation by the time voters next go to the polls. All he needs to focus on is providing the tools to do the job.

Further cuts to corporation tax will increase the attractiveness of the UK as a place to invest. With this region’s available land, skilled workforce, international connections and energy potential, the North-East is now an attractive option.

Extra infrastructure investment was promised. Hopefully, some of that will go on the priorities in the North-East we explained to the Transport Secretary last month.

The freeze on fuel duty should have a big impact in this region because of the distance we need to transport goods to market.

However, long-term reform to ensure hauliers supporting North- East manufacturers receive a better deal is still needed.

The tax breaks on employer National Insurance contributions is the right area to target to stimulate job creation, but the measures will only have an impact on the smallest firms, and not provide incentives for large firms to increase their workforces.

A question remains over whether that is sufficiently radical to seriously alter the conditions for business in the UK.

There were hints in last week’s Budget of the kind of measures needed. Help to Buy caught the eye.

If that kick-starts the housing market and gives confidence to housebuilders, it could provide some much-needed investment in property and succour for the construction industry in the region.

The local growth pot to be created in response to the Heseltine Report also gives an opportunity for some radical approaches to economic development in the region. The challenge will be for our LEPs to spend two years developing the best plans for how to use the money.

Two measures on energy may be significant for the North-East. It is to be hoped that one of the carbon capture and storage schemes to be progressed will be for Teesside, which could demonstrate the value of having our burgeoning energy sector and excellent manufacturing and process industries side-by-side.

And the new tax and planning regimes for shale gas could be extended to cover coal gas, which provides a huge potential opportunity for the North-East.

I suspect the planning challenges around this will be significant, though, and it will require some bold local leadership as well as a favourable approach from the Treasury to capitalise upon it.

We need more measures like this, delivered faster, to really give the impetus the North-East economy needs.

  • James Ramsbotham is chief executive of the North East Chamber of Commerce.