MAJOR investment has been announced as part of a budget designed to show the North-East the Government is trying to honour its pledge to ‘level up’ inequalities across the country.

Chancellor Rishi Sunak, MP for Richmond, promised high levels of spending in infrastructure, the NHS and public services, with tens of millions of pounds allocated to the region’s roads, rail, housing, broadband and flood defences.

Meanwhile, increases in the National Insurance threshold and the National Living Wage will mean families keep more of the money they earn.

The Government estimates someone working full-time on the minimum wage in the North-East will be over £5,200 better off compared to ten years ago.

Henri Murison, director of Northern Powerhouse Partnership said: “A northern Chancellor has given a budget which makes a credible start towards levelling up, closing the North–South divide by investing in the infrastructure which will underpin the Northern Powerhouse.

“Ensuring those living and growing up here today can take advantage of the opportunities that will be created here is the challenge for the Comprehensive Spending Review.”

Announcements for the North-East include:

• Creating a £4.2 billion Local Public Transport Fund for combined authority areas to dramatically improve bus and train services in their areas.

• Delivering £700 million for major strategic road schemes between 2020 and 2025, including work on the A1 from Morpeth to Ellingham and redeveloping the A1/A19 junctions north of Newcastle.

• Boosting funding for the region’s road maintenance by £29 million to repair potholes.

• Providing £198 million to improve transport across the North-East, including the Tyne and Wear Metro System. Provided through the Transforming Cities Fund, the money will be used to improve the frequency and reliability of services, by dualling the remaining sections of the track by investing £95 million in the Metro.

Councillor Martin Gannon, chairman of the North-East Joint Transport Committee and leader of Gateshead Council, said: “We’re pleased that the Government has recognised and respected the ambition shown by the region to transform its public transport and sustainable transport networks.

“The Government has provided us with funding to deliver that transformation in conjunction with our regional partners, however, the level of funding announced today has left us with the challenge of having to prioritise schemes that all have a positive impact on sustainable transport in our region.

“We are also pleased to note we are mentioned alongside city-regions that can benefit from a new public transport fund and we will be working with Government to understand how we can access additional funding to ensure we can achieve our ambitions to transform the North-East’s transport networks to benefit the travelling public and the environment.”

The Chancellor also announced:

• Improving flood defences to protect more homes from extreme weather events. £2.5 million for Wallsend, £1.5 million for Chester-le-Street and £5 million for Hartlepool to better protect over 1,400 properties.

• Providing £12 million to connect more people to full fibre broadband. The funding is part of the third wave of the Local Full Fibre Networks Challenge Fund.

• Supporting research and development in the steel sector. £22 million, subject to a business case, for the development of research and development in the steel sector through the Materials Processing Institute.

• Supporting the development of more than 4,000 homes with the £25 million from the Housing Infrastructure Fund for the South Sunderland Growth Area Cluster, delivering road and junction improvements to unlock up to 4,066 homes.

• £7 million to plant 1 million trees in the Great Northumberland Forest and further funding for the Northern Forest.

Conservative MP for Darlington, Peter Gibson, said: “Last year’s election gave a clear verdict. Now the people’s Government is delivering a Budget which delivers on our promises to the British people, it is a budget of a government that gets things done.

“Investment will reach record levels over the next five years, as the Conservatives commit to levelling up across the country – benefitting families and businesses in all corners of the country including Darlington.

“I am delighted that we have set out measures to support families and help them with the cost of living, while continuing to invest in Britain’s future responsibly – laying the foundations for a decade of growth and prosperity.

“This is the first Budget delivered outside of the EU for more than five decades. It sets out a clear, one nation, path for the Government to get things done.”

Sarah Glendinning, the Confederation of British Industry’s regional director for the North-East,described the budget as ‘bold’.

She said: “We welcome the announcements on increased investment in innovation and assurances on funding for vital infrastructure schemes like the redevelopment of Darlington station and the northern strategic road network. Both will unlock local capacity and opportunity across the region. It is very good to see this budget’s focus on innovation and infrastructure. The Chancellor has listened to many calls from CBI members, with decisive action on vital long-term issues. Overall, the budget is a powerful signal to firms at home and abroad that the UK can and will manage the immediate challenges and long-term opportunities in parallel.”