ONE of the nation's leading industrialists is to head a major effort to unite the economic might of the north of England.

Sir Graham Hall is to lead a new high-powered project designed to boost the future prosperity of the region.

As chairman of the Northern Way steering group, he will lead a period of sustained work to create a new framework for the North, linking economic development, education, skills, housing and transport policies.

Sir Graham, 60, is a former chairman of both the Confederation of British Industry and the regional development agency Yorkshire Forward, and has a wealth of private and public sector experience.

The group has also been bolstered by the appointment of the chief economic advisor to the treasury, Ed Balls, as the representative of Deputy Prime Minister John Prescott and Chancellor Gordon Brown.

Development agencies in the North have told the Government they want to create a "Northern Growth Corridor" to boost the productivity of the North, reduce regional disparities and tackle social exclusion by linking areas of opportunity with need.

A task group chaired by One NorthEast chief executive Alan Clarke will thrash out the fine detail of the report which will be submitted to the Government in the summer.

It aims to provide common strategic priorities, raise economic growth across the North and influence Government policy to promote flexible funding.

Sir Graham said: "We have the talented people to seize this tremendous opportunity we have been given to combine our strengths to boost economic output and guide Government policy.

"We need to have greater flexibility in the North to make better use of the money we get and have the power to make the decisions we need to make to achieve a real difference to business and society."

He added: "Investing in our workforce through skills, training and education is crucial if we are to provide the employees that tomorrow's increasingly sophisticated employers will need."

Mr Clarke said: "Sir Graham has the background, experience, leadership and credibility needed to lead a project as important as the Northern Way.