FEARS that the North-East is fighting against the downturn "with one hand tied behind its back", has prompted business leaders to call on the Government to place this region at the forefront of his economic recovery strategy.

In a letter to George Osborne ahead of tomorrows (Tuesday) Autumn Statement, The North East Chamber of Commerce (NECC) called on the Chancellor to take radical action to help the region realise its growth potential.

The submission, from NECC Chief Executive, James Ramsbotham, urged Mr Osborne to show that he is serious about rebalancing the UK economy between the regions by changing his spending priorities, cutting taxes and accelerating infrastructure spending. It also calls for planning reform; further easing of monetary policy to boost credit availability to businesses and the priority placed on investment and exports.

Slower-than-expected economic growth has led to concerns that Mr Osborne will have to raise taxes, impose more stringent spending cuts or prolong his austerity measures in this weeks interim Budget announcement.

Mr Ramsbotham said: "If the Governments aims of re-balancing towards the private sector, towards exports, and towards manufacturing are to be achieved, we believe re-balancing towards regions such as the North-East which have the potential to perform much more strongly is essential. "The regions sustained excellence in export performance contributes enormously to UK Plc, but by playing to strengths in this field and manufacturing and utilising regional capacity for further business development the North East could be contributing so much more.

"The regions businesses continue to generate wealth and jobs for the region, our export performance is a demonstration of that, but if we are to fulfill our economic potential we must have the same opportunity as the South East to be globally competitive.

"While we appreciate that change does now occur overnight, we are demonstrating the strategic and economic value a high-speed rail network would bring to the region or much needed upgrades to the A1 and A19, highlighting that our airports continue to be hit by heavy taxation and that acceleration of broadband funding would enormously boost our digital network.

"Without addressing these issues immediately the North-East will always be entering the fight for economic growth with one hand tied behind its back."

NECC, which represents more than 4,000 businesses who in turn employ around 30 per cent of the regions workforce, has called on more support for exporters to build the North-Easts reputation as the only region in the country with a consistently positive balance of trade and the highest level of exports relative to GDP, both driven by our strong manufacturing base.