NORTH-EAST green energy businesses are expected to benefit from the Chancellor’s commitment to place the development of the low-carbon economy near the top of the Government’s priorities to stimulate growth.

Business leaders in the region broadly welcomed the proposals that will mean about £2bn is set aside to support renewable energy, carbon capture and storage, and the Green Investment Bank.

Mr Osborne promised £1bn for the bank, to fund lowcarbon projects, with more to be raised by private sector investment and the future sale of Government assets.

There have been calls for it to be located in the North- East because of the region’s growing expertise in the lowcarbon sector.

Alex Dawson, of TAG Energy Solutions, which is to build a factory making offshore wind turbine foundations on the banks of the River Tees, said: “The funding available is very welcome and should be invested in creating a credible and effective supply chain.”

North-East Chamber of Commerce president Martyn Pellew said: “Large investments in grid infrastructure are still needed to make developments such as offshore wind economically viable.”