Digital technologies, health innovation, energy and advanced manufacturing have the potential to transform the north of England’s economy, adding £97bn and 850,000 jobs by 2050.

These are the conclusions of the newly-published Northern Powerhouse Independent Economic Review, which identifies key capabilities across the North that could provide the foundations for closing a major gap in productivity, generate jobs and enhance global competitiveness.

John Cridland, the chairman of Transport for the North, said: “This review clearly identifies that, if the right investment and focus is put into these capabilities, and the infrastructure is there to support them, then million new jobs could be generated by 2050.

"Close to a million of these will be directly attributable to the success of the Northern Powerhouse and we would expect productivity (GVA) to be 15 per cent higher than currently which, in itself, would represent a major step-change for the North.”

Transport for the North, the new body that will have statutory authority for long term transport investment strategy in the region, commissioned the Northern Powerhouse Independent Economic Review on behalf of the Northern Powerhouse partners to provide a clear picture of the economic landscape of the North in a national and global context and identify the major opportunities for economic growth.

Analysis has shown the North lags behind the rest of the UK, and in particularly behind London, in terms of productivity and jobs.

The North produces £4,800 less GVA (Gross Value Added) per person per annum and over £22,000 less per person than London.

Yet it contains twice as many people as London and has clear potential to be a globally-competitive region.

The Review has identified ‘capabilities’ in which the North is a world leader - advanced manufacturing, digital development, health innovation, and energy.

These are supported by three enabling capabilities that are vital if growth in these areas is to be nurtured - education, logistics and financial and professional services.

This is the first time such a comprehensive report has been commissioned for the North.

Mr Cridland added: “This review will be fundamental for future planning. Central to powering the North’s future economy will be an efficient high-capacity transport network capable of fully mobilising the workforce between the North's key economic heartlands.

"The review clearly identifies that such a network must be tailored and shaped to recognise emerging and sustainable strengths whilst acknowledging that many northern jobs are in other service sector businesses on every northern high street.

"In addition to this, improved education will be vital to give young people the chance to go for better jobs using the improved transport links we are delivering.”

He said that, to achieve such a transformational change, including major transport interventions such as a major new road or rail routes, “a step-change in investment strategy is required and long-term collaboration between key partners across the North, and with Government and national agencies, will be essential if our joint ambitions are to be realised.”

The Northern Powerhouse Independent Economic Review was formally launched to business leaders and public officials from across at the Royal Liver Building during Liverpool’s International Festival for Business.