Treasury Minister pleads for time to deliver '˜northern powerhouse'

Lord O’Neill will argue that the drive to strengthen the North’s economy is tackling a 50-year-old problem and cannot yet be declared a success or failure.

The former Goldman Sachs economist and champion for transferring power and money from Whitehall to cities will also talk up the economic potential of the North.

Problems with the Government’s plans for transpennine rail electrification and job losses in the steel industry have led to critics suggesting the Government’s ‘northern powerhouse’ plan lacks substance.

Lord O’Neill, a key figure in discussions over devolution deals in Yorkshire, will say: “Cities in the North have a proud history and together their potential is huge: within 40 miles of where we are here in Manchester, you have Leeds, Sheffield and Liverpool, Lancashire, Cheshire and Yorkshire – a belt of cities and towns that contains ten million people - more than Tokyo, New York or London.

“That could be game changing.

“We know that we can revitalise the economy of the north. But we have to get this right, and we have to be in it for the long-haul.

“It is just over 18 months since the Chancellor first talked about building a Northern Powerhouse and those who criticise it from the sidelines every time an individual project suffers a setback fail to realise its size, its scope and its enormous potential.

“This is a big, systematic, long-term endeavour to address a problem which has existed for at least half a century. That is why it is crucial that its success should be measured in years, not months.

“Of course, there will be some setbacks – industries which were successful in the Industrial Revolution won’t automatically be successful in the 21st century. Adaptability is needed – as is diversification.

“I am confident that the North can become home to a new generation of winners.”

Lord O’Neill will be speaking at a major northern powerhouse-themed conference in Manchester today.