Business leaders urge Cameron to back North in bid to narrow economic divide

With a general election expected in less than three months, the Tories' economic blueprint has been described as "raising as many questions as it answers".

Yorkshire and Humber Chambers of Commerce, an apolitical organisation which represents 12,500 businesses, is concerned the Conservative Party has failed to match Labour's stated desire to bridge the economic divide between North and South. They fear Shadow Chancellor George Osborne's promise of a "new economic model" falls "well short" of what is needed to ensure the North prospers and offers little sign of how the Tories would help growth in the private sector.

The chambers – which welcome many of Mr Osborne's pledges such as cutting regulation and easing the tax burden for small firms, and have previously criticised Labour's failure to heed warnings over the economy before the recession – also warn the Tories must be clearer on other policies such as devolving powers from Whitehall.

The Conservatives must win a string of key marginal seats in the region to take power but opinion polls have narrowed in recent weeks and today's comments suggest they can not yet be confident of claiming to be the party of business again.

Nick Pontone, policy director at the chambers, said: "The 'new economic model' raises as many questions as it answers. Whilst its business-friendly tone is welcome, the Tories need to go further if they are serious about the economic renewal of the North."

Mr Osborne has committed to raising the private sector's share of the economy in all regions but the chambers fear this does little to help the private sector prosper because it can simply be achieved by cuts in public spending.

"The analysis is right, the target is wrong," said Mr Pontone. "An explicit commitment to raise the rate of economic growth in lagging cities and regions is more challenging but would, if successful, be far more beneficial for UK plc. Whatever the colour of the next Government, we would support it in developing an active policy approach which boosted growth in Yorkshire.

"The Tory plans do not yet explain how they would build a proper high-speed rail network serving the whole of our region at the same time as funding more immediate road and rail priorities.

"They do not convincingly set out how they would deliver their ambitious promise for super fast broadband. They are not clear about whether the business community or local authorities would lead the economic regeneration of our region and which powers they would shift out of Whitehall."

Mr Pontone said there was a "great deal" in Tory proposals which "chime" with the chambers' manifesto they are using to lobby all political parties, highlighting a pledge to tackle excessive regulation, ease the burden of corporate taxation and promote exports as "positive steps to rebalance the UK economy".

Shadow Treasury Minister Mark Hoban said: "We have set ourselves a transparent benchmark of raising the private sector's share of the economy in every region."

The commitment to helping the North's economy thrive was demonstrated by, among other things, the creation of the Northern Board and a pledge to bring high speed rail to Leeds and other northern areas.