CHANCELLOR George Osborne sparked disbelief yesterday with a sudden vision of a “powerhouse” northern economy centred around a new Manchester-Leeds high-speed railway.

Train drivers’ union Aslef leader Mick Whelan accused Mr Osborne of peddling a political stunt to shore up the Tory vote in next year’s general election.

Labour shadow chancellor Ed Balls declared that nobody would believe the Tories could deliver the jobs, growth and investment which the north of England needed.