BUSINESS leaders yesterday warned that the North East is being forced to fight harder to be heard in Whitehall - as Chancellor George Osborne unveiled a package of reforms aimed at getting the economy moving.

Heidi Mottram, chief executive of Northumbrian Water, joined North East Chamber of Commerce boss James Ramsbotham in expressing concern about the Government’s attitude to the region during a fringe event at the Tory conference in Manchester. North Tyneside mayor Linda Arkley insisted the Government did understand the region’s importance and said she delivered that message in regular meetings with ministers.

In her address to the fringe event, the elected mayor also raised worries about Scotland being allowed to offer financial incentives to companies to locate there.

And she expressed concern about the possibility of Air Passenger Duty (APD) being reduced north of the border under plans to hand more powers to Scotland.

The Journal’s A Tax Too Far campaign has warned of the damaging impact of the controversial tax on flying.

Their comments came as Chancellor George Osborne unveiled a package of measures that he insisted would help economic growth. Mr Osborne said Government austerity plans were essential to stop the country facing a Greek-style meltdown.

Another freeze on council tax was announced by the Chancellor, with the £805m bill to be paid for from under-spent budgets across Whitehall.

And he unveiled so-called “credit easing” to help small and medium-sized companies secure asset with banks unwilling to help.

Under the scheme, the Government would buy bonds issued by firms – potentially through the Bank of England.

The Tories say it would not add to the national deficit because the state would be buying an asset, with the Government expected to unveil further details next month.