BUSINESS leaders have welcomed the appointment of a North-East MP to lead the Government’s Northern Powerhouse.

Stockton South MP James Wharton will oversee the Conservative’s focus on the region, as Parliamentary Under Secretary of State for Communities and Local Government.

Mr Wharton will be responsible for administering the powerhouse, which the Government says will see the North play a leading role in driving forward the UK economic recovery.

Mr Wharton’s new position comes after Middlesbrough-born Greg Clark replaced Eric Pickles as Communities and Local Government Secretary.

The moves are expected to give the region a louder voice in Westminster over devolved powers and better transport links, after previous criticism the powerhouse was skewed too far in favour of the North-West and Manchester.

However, business figures in the region told The Northern Echo fears of the latter would be allayed by Mr Wharton’s new role.

James Ramsbotham, North East Chamber of Commerce chief executive, said: “This is certainly a step in the right direction.

“To have someone specifically responsible for the North, who understands the North-East, our issues and what our region needs to do for business, is immensely important.

“Some may question the Northern Powerhouse and whether it will benefit the North-East, but there is much to be gained by working with Manchester and Leeds.

“We certainly have a lot more in common with these cities than with Westminster.

“We need to work together to enable the whole of the North to fulfil its potential.”

Stephen Catchpole, managing director of Tees Valley Unlimited Local Enterprise Partnership, said he was looking forward to the regeneration body making a significant contribution to the powerhouse.

He added: “Tees Valley has an important role to play in the success of the Northern Powerhouse.

“We positively support the need for investment in the North and will be active in helping secure investment to support the fulfilment of its economic potential.”

A spokesman from the North East Local Enterprise Partnership, which operates from County Durham to Northumberland, also praised Mr Wharton’s appointment.

He added: “We look forward to working with Mr Wharton in his new role, to learning more detail about the Northern Powerhouse and how the North-East can play a full part in contributing to and benefitting from a rejuvenated North of England economy.”

Speaking to The Northern Echo last year, Chancellor George Osborne dismissed criticism the powerhouse was focused too much on the North-West.

Mr Osborne said £290m road-building plans to dual the A1 to within 25 miles of the Scottish border, and widen the A19 between Wynyard and Norton, near Stockton, proved the Government was committed to the region.

He also pointed to investment in a £20m Newcastle-based medical research centre, to find ways of supporting people in old age, and a new National Formulation Centre at NetPark, in Sedgefield, County Durham, which will develop next generation products, such as washing detergents that can be used without water.

He added: “We need a Northern Powerhouse to provide more jobs and opportunities and there are lots of examples of the Government backing the North-East.

“London dominates more and more, and that is not healthy for our economy.”