Percy promises to close North's transport funding gap

Mr Percy insisted North businesses benefit from spending on transport investment in the South-East but promised future Government decisions would address the current gap in spending.

A report from the IPPR North thinktank this week revealed that transport spending in London is on track to be 10 times larger in London than Yorkshire over the next five years.

Mr Percy was speaking at the UK Northern Powerhouse conference in Manchester which had previously heard calls for the Government to commit to delivering the Northern Powerhouse Rail project in next month's Budget.

He said: "I think we've got to be clear when it comes to transport investment, regional variations that we have seen - although there are often some good reasons for that - we need to be and will be taking into account those regional variations at the moment in the future allocation of funding from central government."

The Brigg and Goole MP echoed recent comments from Transport Secretary Chris Grayling that the Crossrail project in London is distorting the figures which will change markedly as construction on the HS2 rail line gets underway.

He added: "We must understand that investment that occurs in London is always sometimes of value to the North as well. If we constantly get into this 'us and them' as existed in the North previously - and you still hear today about 'it all goes to Manchester' - that doesn't get any of us anywhere."

The minister also confronted suggestions that last year's change of Government and the sacking of George Osborne, who coined the Northern Powerhouse term, as chancellor by incoming prime minister Theresa May showed the new administration was less committed to accelerating growth in the North.

He said: "I am always keen that, being conscious of the fact that the Government is at the heart of a lot of what we're trying to achieve with the Northern Powerhouse, it shouldn't be something that is owned by one political party or indeed owned by Government.

"This is hopefully an agenda that will outlive any particular minister, any particular chancellor or any particular Government."

Mr Percy described Mr Osborne's achievements as "really impressive" and welcomed the former chancellor's Northern Powerhouse Partnership launched last year.

He added: "We've been really clear it is not embodied in one individual. Look at what's happened since the change in Government back in July.

"We've had this £556m [Local Growth Fund] allocation, the biggest share of that fund, into the Northern Powerhouse. The Treasury remains at the heart of the Northern Powerhouse agenda. We've launched the Northern Powerhouse strategy, the first one, by the new chancellor. The Prime Minister has made commitment after commitment to it. Look at the industrial strategy, specific references to the Northern Powerhouse.

"Indeed what we've delivered on the Northern Powerhouse is being used as an exemplar for what we are trying to do with the Midlands Engine."