IN his Budget on Wednesday, the Chancellor spoke eloquently of the North-South Divide, without mentioning it by name.

He described how the prosperity of Britain overall had left too many places and communities lagging behind.

We wholeheartedly endorse those sentiments.

Gordon Brown's visit to the region today signals his commitment to narrowing the yawning gap between the most prosperous regions and the most deprived.

And we hope the extra money he is due to give to the Regional Development Agencies marks the beginning of a long-term commitment to achieve a more equal distribution of wealth across the nation.

Over the past two decades we have shared some of the economic progress made in the country, and there have been some significant economic success stories.

But our prosperity has always been held back by the economic setbacks which have prevented us from reaching our full economic potential.

No other region in the country has been saddled with the devastating impact of terminal decline of its shipbuilding and coal mining industries.

Having to cope with those legacies over the past two decades has meant the region has never been able to compete with other parts of the country on equal terms.

Sadly, over the same period, the inequality has been compounded by the Barnett Formula, which offered more state assistance to Scotland and Wales than to the North-East.

Let us hope that Mr Brown today will signal his intention to end that inequality and summon the political courage to review the Barnett Formula.

If he does not, then there will be little prospect of the North-East catching up with other regions in the forseeable future.

Our regional economy still has a bias towards traditional manufacturing industries.

The prospect of wholesale cutbacks in steel-making clearly demonstrates the relative fragility of the North-East's economic base.

And while we welcome any incentives to regenerate run-down areas of the region, we sincerely hope that regeneration is not confined simply to environmental schemes.

We trust there will be a heavy emphasis on job creation in manufacturing industries with a secure long-term future