John Prescott's communities plan for the north may not get extra government funding, according to the chair of its steering group.
Industrialist Sir Graham Hall also said he intended to focus on economic growth rather than housing renewal.

In his first interview since his appointment last Thursday, Hall said: "I'm not here with my cap in my hand asking for money.

"I'm going to look first at the synergies we can get between the three development agencies before I ask the government for any money."

Hall said it was "entirely possible" the steering group would not bid for government funding. "It's not wise to ask for money in the current climate. I'm more interested in reducing the overhead costs that businesses face in the area.

"There's no point building houses if there aren't jobs within a reasonable distance."

Hall is a former chief executive of Yorkshire Electricity until 2001, and chaired regional development agency Yorkshire Forward from 1998 to 2003.

His steering group has been charged with producing an interim report for the July spending review.

The government launched the initiative, called the Northern Way, on 2 February to create sustainable communities in the North.