Mr Clarke said: “I believe that the region is better placed than ever before to take advantage of the opportunities the economic recovery will present.

“The diversity of our economic base, signs of growing optimism from regional businesses and the underlying strength of sectors such as new and renewable energy means the region can look ahead with confidence after a very challenging past 18 months.

“Today’s announcement is very welcome and comes as a great relief to many people and businesses across the region.

“But there is no doubting the size of the task we have in rebuilding our economy after the worst economic downturn in living memory.

“One North East has been working with partners to help the region hit the ground running when the recession ends, supporting companies through the tough times while putting in place the economic conditions to help new and growing businesses who will lead forward our economic growth.”

The regional development agency has helped firms through the recession and prepare for the upturn by:

-  Swiftly reprioritising an additional £52m from its budget to support regional businesses through the downturn

-  Delivering the Grant for Business Investment - since the recession began in the second quarter of 2008, the Agency has awarded 213 North East companies £22m in Grant for Business Investment support. This investment has resulted in the safeguarding of more than 2,200 jobs and created nearly 3,500, levering in £280m worth of capital expenditure to the region

-  Establishing a £9m Transition Loan Fund which helped 74 viable firms suffering short term cash flow problems, protecting more than 2,000 jobs

It is helping the region prepare for the recovery and new opportunities by:

-  Launching the £125m Finance for Business North East fund - creating up to 5,000 new jobs in hundreds of regional businesses over the next five years through loans and equity investments

-  Leading the development of the £60m Tees Valley Investment Programme to underpin the transformation of the process industries sector into low carbon and advanced manufacturing

-  Working with Nissan and regional partners to develop the North East Low Carbon Economic Area - positioning the North East as the place in which to develop low carbon vehicles.

Ends.

For more information, contact Bryn Littleton (press office) on 0191 2296713 or 07717 468918 or by emailing bryn.littleton@onenortheast.co.uk