Anyone wondering what Greorge Osbome, the chancellor of the exchequer, has in mind when he talks about creating a new "Northern Powerhouse" should visit a patch of land between Newcastle train station and the river Tyne, a few miles from the vast Angel of the North sculpture (pictured). By a large construction site is a long, slightly shabby building, its brickwork worn with age. Here, in 1829, Robert Stephenson, a local-bom engineer, built the Rocket, one of the world's first steam locomotives. Now, inside two glass office pods within the old workshop, a graphic-design company and a software firm have set up shop, part of a growing tech cluster in the North East that epitomises what Mr Os-borne is trying to foster. Last year the chancellor announced that he wanted to use science and technology, improved transport and devolved political power to regenerate the north. Then, after his Conservative Party's surprise election victory last month, he confirmed that commitment, stating baldly that the old model of running everything from London was broken. Cities can now apply for control over areas such as housing, transport and training, as long as they accept an elected mayor.
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