Hague: 'We'll make Britain open for business again'

The former Conservative leader said the party would press ahead with spending cuts if elected, despite fears it could harm the fragile recovery, and claimed that Britain's debt position places it "at risk of becoming Greece but without the sunshine".

He told the 650 sell-out audience in York: "Among all the wonderful enterprising businesses and huge business achievements that we see taking place across Yorkshire and the North of England, still more can be achieved if we liberate them from over-complicated taxation and excessive regulation." Mr Hague said the Tories aim to have the most competitive corporate tax rate in the G20 group of countries and would start by reducing corporation tax to 25 per cent and 20 per cent for small companies.

He promised to change rules on controlled foreign companies to encourage inward investment by multinationals. Mr Hague also promised to bring "simplicity, stability and predictability" to the tax system and reduce the burden of red tape with a "one-in, one-out" rule.

On the future of regional development agencies, he said: "Although we will abolish most RDAs which are expensive and duplicative, we will encourage local economic partnerships that are business led, we will still allow regional economic development bodies to work in those areas where they are wanted and supported by local councils and populations and I believe Yorkshire to be one of them."

Other Tory proposals include plans to allow local authorities and communities to keep a share of business rates in a bid to encourage developments in their areas.

In an interview with the Yorkshire Post, Mr Hague said the region should be well-placed for economic recovery "because of all its natural advantages".

"I'll always be an optimist about Yorkshire. When you look at businesses like AESSEAL, which I was a non-executive director of for a while, and see hi-tech, high research and development manufacturing can succeed in South Yorkshire in what used to be a great manufacturing area then you realise we must not give up on manufacturing in the country," he added.

He declined to answer questions over the row on party funding.