THE Budget delivered bad news for leaders in the Tees Valley, which missed out on a bid for City Region status.

The Government has chosen Manchester and Leeds to lead the City Region Forerunner initiative, a move that Hugh Lang, chairman of the Tees Valley Unlimited (TVU) partnership, described as disappointing.

The winners are expected to be given greater powers over public sector investment, helping the regional economy.

Mr Lang said: “We are disappointed that, having put forward what we felt was widely recognised as a very strong bid, we have not been named in the initial areas.

“However, the Tees Valley remains at the forefront of taking forward partnership working to tackle economic, social and environmental challenges. Only a few weeks ago, at the TVU’s inaugural annual conference, the Local Government Minister, John Healey, praised the Tees Valley as an example for other areas. TVU will be continuing its dialogue with Government on ways to improve the delivery of economic outcomes for Tees Valley.”

Local Government Secretary Hazel Blears yesterday paid tribute to the strength of the Tees Valley bid.

She said: “Although Tees Valley has not been announced as a City Region Forerunner, we very much value the work that the Tees Valley has been pioneering.”