IT is now crystal clear what the North-East needs to do to become an economic powerhouse – threaten to quit the United Kingdom.

This is, of course, the action followed by the Scots, who are being love-bombed by the Treasury to bribe them into staying inside the Union.

I have written before about the injustice of the Barnett Formula – which hands every Scot £507 more than someone from this region – but that is now only the start of it.

The Scotland Bill, which cleared the Commons this week, creates two more tasty ways for Edinburgh to surge further ahead of the troubled economies of the North.

So, its parliament will be able to issue bonds to raise cash from capital markets and protect itself from sudden spending cuts.

And the date for Edinburgh to grab extra funds for key projects – through tax increment financing (Tif), borrowing against future business rates – has been brought forward by two years, to this year.

According to the Treasury, the Bill will hand Scottish ministers an extra £2.7bn of borrowing power – and the ability to spend a whopping £12bn overall.

The borrowing means work can start immediately on a new £2.3bn Forth Bridge, on the edge of Edinburgh – adding to a £500m cash handout from the Treasury, delivered as a “Barnett consequential”.

Here in England, any similar project is doomed without the dreaded private finance initiative (PFI) – and tolls to pay back the loan. Happily, the Scots will cross the Forth for free.

As Nick Clegg, the deputy prime minister, put it, as he unveiled the package: “We are always looking to do more for the benefit of Scotland.”

However, this is not a column kicking the Liberal Democrat leader, who deserves praise for being the only senior politician arguing for real devolution within England.

It is Mr Clegg pushing for Tif powers for England’s big councils – and it is not his fault that this vital loosening of Whitehall’s iron grip will not be achieved any time soon.

Sadly, two big-hitting Conservatives – Chancellor George Osborne and my old friend Eric Pickles, the Communities Secretary – are insisting that legislation is required first.

And there is no date for that Bill.

Given that Tif almost certainly counts as a form of government borrowing – on a balance sheet splattered with red ink – Mr Osborne is unlikely to be enthusiastic, I fear.

Meanwhile, both Labour and the Conservatives have hinted at allowing town halls to sell bonds to investors... but, predictably, nothing has happened.

Remember that Scotland is already hugely more wealthy – enjoying income-per-head at 98.8 per cent of the national average, compared with only 78.2 per cent in the North- East.

In the Tees Valley and County Durham, the figure is a scandalous 70 per cent.

It’s obvious. It’s time to form the NENP – the North-East National Party – and announce a referendum on independence.

It’s the only way to make London listen.

Meanwhile, Lord Joel Barnett – who gave us the hated formula that carries his name and, as I report today, will lead a revolt on the Scotland Bill – reminded the prime minister that lavishing favours did nothing for the Tories in the past.

He told peers: “In the 1997 election, they lost every seat in Scotland.”