Tories in manufacturing pledge to improve region's skills

Mr Osborne, the Shadow Chancellor, set out his party's plans for an economic recovery in the region driven by business investment and exports and said he would untie it from the fortunes of the City of London.

"There is a great opportunity for Yorkshire business if we can expand the manufacturing base and not rely, as we have done over the last 10 years, on Government debt and consumer debt for the growth in the Yorkshire economy but actually have a bit of business growth, private sector recovery and see new jobs created here.

"We need to create more sources of jobs because there are a lot of people in West Yorkshire who are without work, particularly young people."

Mr Osborne was speaking as he visited LNT Group, a portfolio of companies based in Garforth, Leeds.

Mr Osborne's economic model for Yorkshire is based on benchmarks for growth, such as making it easier for small and medium sized enterprises (SMEs) to win Government contracts, which he said would be worth 1bn to firms here.

The plan also includes cutting the national debt, creating a more balanced Yorkshire economy; tackling youth unemployment, making Yorkshire a centre for international business, increasing productivity growth in the public sector, reforming the banking system to make it easier for SMEs to get credit and building a greener economy.

The Shadow Chancellor was shown the technology behind Ginetta's landmark electric car, the G50EV, a working prototype sports car, and raised hopes the manufacturer could win backing to develop it under a Tory Government. Last year Ginetta was turned down for a 1m development grant by by the Technology Strategy Board.

"One of the ideas we have got is a green investment bank which would specifically look at funding interesting green products."

Mr Osborne, who was accompanied by Alec Shelbrooke, the Conservative prospective Parliamentary candidate for Elmet and Rothwell, said that improving skills in electrical engineering and mechanical engineering would help businesses in Yorkshire sell to China, India and continental Europe.

"We want a more balanced economy across the UK so we don't get all the growth in the south-east and London.

n Hear the full interview with George Osborne in Business Talk at yorkshirepost.co.uk from Tuesday.