Further evidence that the North East economy faces being left behind has sparked new calls to help struggling areas.
Accountancy giant EY said the North-South divide in England will widen over the next three years, and that the North East will have the lowest rate of growth in the country.
The economic divide within the region is also set to increase, the study says, with Newcastle and Darlington outperforming other areas on growth.
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Nationally, the study found that between 1997 and 2019 the four most southerly regions in England increased their share of the 海角视频 economy from 60% to 63% – a trend that will continue unless action to rebalance the economy is taken.
EY said that, on current trends, London, the South East and the East of England will be the three fastest growing regions over the next three years while the North East, Yorkshire and the Humber and the South West will be the slowest growing locations.
Mike Scoular, office managing partner for EY’s Newcastle office said: “This report highlights the well-documented issue of the increasing disparity between major cities and towns across the 海角视频.
“It’s great to see Newcastle and Darlington perform well and capitalise on the expansion of the public and private sectors in the region but it’s disappointing that Middlesbrough and Durham underperform and lag behind.
“It’s clear that a top-down approach isn’t working and government alone is not going to solve this problem. Although recent announcements like the green-lighting of HS2 will help with infrastructure and connectivity, we need a different approach if we are to truly ‘level-up’ the economy.
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“Targeted levelling up and increased devolution right across the North are needed to provide regions such as the North East with the power to invest in towns and communities, not just the core cities.
“What’s needed is a blend of public and private sector investment to spread the wealth right across the region for the benefit of everyone.
“However, the region also needs to take the initiative by investing in innovation and skills to increase productivity and raise our ambition.
“As the 海角视频’s relationship with Europe changes, the North East could benefit from some fantastic opportunities, especially for ports on the East coast which could become important supply chain hubs, easing the pressure from established hubs in the South.
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“To do this, we need to improve our rail infrastructure and our airports, while at the same time, support our digital and technological sectors to ensure we can effectively transit goods through the region and beyond and ensure that the region’s prosperity is enjoyed by all our towns, not just our major cities.”
EY predicts that Newcastle and Darlington will both see annual growth rates of 1.7%, while Sunderland will see growth of 1.2%.
Middlesbrough and Durham, however, are expected to see growth rates slow to 1.1% and 0.9%, respectively, mainly due to losses in the manufacturing sector.
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Groups including the CBI, the North East England Chamber of Commerce and the combined LEPs in the North have called for action from the Government to tackle weaknesses in the region’s economy.
Their calls come after North East employment grew over the last 18 months to far outstrip all other areas of the 海角视频.