John Prescott unveiled the �100m vision in Leeds

The government and the north's three regional development agencies (RDAs) aim to boost housing, transport, tourism and employment.

Closing the gap on the rest of the country would leave the region �29bn a year better off, Mr Prescott said.

The government is to invest �50m in the drive, he revealed on Monday, matching funding being provided by the RDAs.

Thriving communities

Representatives of the three agencies - Yorkshire Forward, One NorthEast and Northwest Development Agency - also attended the launch in Leeds.

Hull East MP Mr Prescott said: "This is a plan that will build on the investment already going into the North to create thriving and sustainable communities where people want to live, not leave.

"This is the first time there's ever been a growth strategy for the three Northern regions together - an area of 14.5m people.

"That's larger than Wales, Scotland, and Northern Ireland put together, and twice as big as London - that's the scale of the market we're talking about and the scale of influence economically and socially that this kind of plan can bring about.

"If we could bring the three northern regions up to the national average, the country would be �29bn a year better off.

"If the level of employment was the same in the North as the South, a quarter of a million more people would be back at work. They're prizes to work for."

The scheme's top priority is to create an "entrepreneurial culture" to help new businesses to flourish.