Corbyn: Labour will 'unleash' economic potential of North

John McDonnell wants a fairer distribution of public funds across the UK. Credit: Daniel Leal-Olivas / PA

Labour leader Jeremy Corbyn has pledged to "unleash the economic potential of the North" as the party sets out its plans for new transport links to revitalise the region.

Speaking at Labour's economic conference in Liverpool, Mr Corbyn said the party would redress inequality and imbalances in a country which is becoming more "unfair and unbalanced" under the current government.

Mr Corbyn said the promise contrasts with the Conservatives' plans, which prioritise east-west links between Cambridge and Oxford.

"The corridor of northern cities stretching from Liverpool and Preston in the west to York and Hull in the east has an economic and skills catchment big enough to match or even exceed London, and there's no reason why not with the right investment," he said.

"To unleash the economic potential across the North we must rebalance our economy to share power and resources.

"Unbalanced Britain is only becoming more unfair and unbalanced under the Tories; between the rich and poor, between Westminster and our nations and regions."

Earlier, Shadow chancellor John McDonnell elaborated on the plans, saying the new "High Speed 3" rail link would transform the economy of northern England, creating 850,000 additional jobs by 2050.

"Labour is absolutely committed to delivering HS3, a Crossrail for the North, starting right here in Liverpool and connecting the great cities of the north of England."

"It's at least a £10 billion commitment from Labour to invest in the North," McDonnell said.

  • 'Time for the rest of the country to get a look-in'

McDonnell said the plan was part of a wider commitment by Labour to close the public funding "gap" between the South and North of England.

"The next Labour government will shift the balance of power and wealth away from a few gilded places in the South East and back into the rest of country," he said.

"If we are to face the world after Brexit, it means every part of our country should be prepared."

"We have to put an end to the Whitehall view that what's good for the City of London is good for the country as a whole.

"It's time for the rest of the country to get a look-in," he added.

  • A 'Barnett Formula for the North'

Labour would also legislate to require ministers to audit their regional capital spend against economic need and report to Parliament when the investment imbalances are "excessive", McDonnell said.

He added that Labour would implement a "Barnett Formula for the North" - a reference to the mechanism for distributing government support for Scotland, Wales and Northern Ireland.

A Conservative spokesman said: "Labour's policy to borrow half a trillion pounds would crash our economy and threaten jobs and infrastructure."