Contractors and developers have been urged to look again at investment in the North after the publication on Monday of the business plan for the Northern Way strategy.

Vince Taylor, director of implementation for the Northern Way, launched early last year to bridge the £30bn output gap between the North and South, said developers had “missed out on previous opportunities”.

“It is worth the construction industry taking a good look at the business plans for the eight city regions that were outlined this week,” he added.

Taylor said contracts, primarily for infrastructure, would come forward by “the end of the year” as a result of £100m from the ODPM and regional development agencies for the North-west, North-east and Yorkshire and Humberside.

Taylor said the business plan was influenced by negative publicity over demolition of obsolete housing.

He said: “We are willing to listen to arguments around the rate of replacement. The current rate is 167,000 over the next 10 years and what we have said is that this is insufficient. We still stick by this accelerated rate of replacement, but are willing to look at ‘innovative renewal’ as opposed to demolition.”