HELPING THE NORTH EAST ECONOMY

Revolution in financial services to help new businesses flourish in the north east of England has been promised by the Liberal Democrats.

Nick Clegg has pledged to set up local enterprise funds to provide capital to companies in Britain's industrial heartlands.

He also announced a plan for "regional stock exchanges" to allow investors to back local entrepreneurs forced to rely on expensive and risky loans from London.

Such exchanges used to exist in most cities and large towns - including Newcastle, Leeds and Sheffield - but they died out by the Seventies as

the power of the City of London grew.

The package, Revitalising Britain's Industrial Heartlands, would bring fairness, hope and renewal to the towns and cities that form the

backbone of Britain.

Ron Beadle, Parliamentary spokesman for Newcastle North, welcomed the announcement

He said: "There are nearly 100,000 square miles in Britain and for the last 30 years, Labour and Conservative governments have been obsessed

with only one of them - the City of London.

"Our industrial heartlands have suffered years of neglect under the Tories and years of empty or broken promises under Labour.

"Under our plans, councils will regain control of business rates, reconnecting local enterprise with local politics.

"Local Enterprise Funds will help people invest in growing businesses in their area and Regional Stock Exchanges will give companies a way to

move into public equity without the huge risks and costs of a London listing.

"The Liberal Democrats will also create a new National Infrastructure Bank to bring in private money to build the transport links, energy grid

and public buildings we need for a sustainable, low carbon economy in every part of Britain."