Chancellor George Osborne revealed made the announcement during a visit to Vantec Europe, a successful warehousing firm, located on an enterprise zone near Sunderland.

A number of incentives such as simplified planning rules, super-fast broadband and tax breaks will be extended to a new 40 hectare site in the region.

According to Osborne, extending successful zones was always part of the government's plan when they were announced in the March budget.

He said: "When I announced the decision to create the North East enterprise zone I said that if it was a success, I would consider the case for expanding it.

"This is a further commitment by this government to enterprise in the North East, helping the private sector create sustainable jobs and lasting industry, replacing the unsustainable public borrowing of the past."

UK print has previously greeted the development of enterprise zones with a muted response. Job displacement rather than creation, unfair advantages and lack of coverage are just a number of issues print businesses have voiced over the zones.