TWO leading business lights have mapped out their vision for the North-East economy.

Douglas McWilliams, a former chief economic advisor to the Confederation of British Industry, said the region had to break out of a culture previously reliant on the public sector.

He said entrepreneurs held the key to expanding the North-East economy, which he said would face a squeeze on consumer spending over the next 12 months.

Mr McWilliams, who is the founder of think-tank the Centre for Economics and Business Research and has advised both main political parties, said: “North-East entrepreneurs are the acorns from which oaks will begin to grow, but they have been stymied by a culture that has looked to the Government rather than do things for themselves.”

Mr McWilliams, who was a guest speaker at the Entrepreneurs’ Forum’s annual dinner, said cuts would have a greater impact on the region because of its disproportionate share of public spending However, he said North- East entrepreneurs were particularly strong, and the IT revolution meant they were less dependent on local customers.

He said: “It is easier for a region to transform itself quickly than it would have been in the past.”

Meanwhile, entrepreneur Jeremy Middleton mirrored Mr McWilliam’s comments in a speech given to business leaders at an Institute of Directors’ North-East briefing.

He said: “If we want good quality jobs that are sustainable in the long-term, then we have to transfer our economy from one dependent on the taxpayer to one where the dominant force is private business – and I mean businesses born here, grown here and staying here.

“That means the overriding challenge and opportunity for our region is to create more new enterprises and to grow the ones we have.”

Mr Middleton’s business, Middleton Enterprises, has invested in and provided support for a number of fledgling North-East businesses. He was also one of the founders of HomeServe PLC, a FTSE 250-listed company that specialises in emergency home repairs.

Mr Middleton said the region had the “talent, initiative and entrepreneurism” to deliver a private sector-led economy.

He called for the introduction of Enterprise Zones to attract investment and said a one per cent improvement in the North-East’s GDP would add about £350m to the economy.

Mr Middleton said: “There must be a strong case to kickstart the private sector in the North-East, where a tax free zone would cost the exchequer very little, but could attract a level of inward investment that could make a real difference to employment, investment and wealth.”