The inclusion of the ambitious Borderlands Initiative in the Government’s Budget statement has been welcomed by the county’s leaders.

Chancellor Philip Hammond spoke about the scheme, which brings together Carlisle City Council, Cumbria County Council, Dumfries and Galloway Council, Northumberland County Council and Scottish Borders Council to promote the economic growth and competitiveness ofthe area that straddles the Scotland and England border.

Earlier this year a confirdential formal proposition was submitted to the UK and Scottish governments for consideration, focusing on the factors which make the area attractive to investors, visitors and those who wish to relocate.

It also seeks to tackle the need for population growth and improved productivity.

Colin Glover, leader of Carlisle City Council, said: “The Borderlands Initiative is a shared ambition that recognises the potential for growth within our region.

“Carlisle is a growing city and working with local authority partners, we want to play our part.

“We want to drive forward projects that will make Carlisle the beating heart of the Borderlands.

“We’re an ambitious city that wants to provide the best platform for growth and future investment.”

John Stevenson, Conservative MP for Carlisle, said: “This is a really important initiative for the region.

“It is the first real attempt to bring the north Cumbria and northern area together with southern Scotland in a proactive way.

“Carlisle will very much be at the centre of it.

“We have to make the best of this partnership and work together to realise the shared benefit.”

Rory Stewart, Penrith and The Border’s Conservative MP, applauded the Chancellor’s commitment to progressing the devolved growth deal.

Mr Stewart has worked on the deal since initiating the proposal while a minister in Defra, when he championed a place-based investment strategy to bolster economic growth in the rural communities of northern England and southern Scotland.

He said: “This is another positive Budget for Cumbria.

“It will herald investment in infrastructure and transport, develop our existing industries, such as agriculture and tourism, and transform the Borderlands into a national example of productivity with high levels of innovation, and the internationalisation of small businesses as we look ahead to a new trading future.”

A Borderlands Initiative spokesman said: “Our shared ambition is to play our full part in the regional and wider UK economy and unlock the potential of the south of Scotland and north of England.

“Discussions with both governments have been positive and we welcome the inclusion of the Borderlands Initiative in the Chancellor’s Budget statement, which now marks the start of the next stage in the process.

“The initiative remains at a relatively early stage, but we look forward to ongoing collaboration and discussion with both governments, with a view to securing agreement as soon as possible.”

The Borderlands Initiative focuses on several key themes, including digital technology, innovation, low carbon and energy.

The approach is based on existing physical and infrastructure connections, and transport and connectivity are at the heart of the partners’ proposals, linking the opportunities that can be created and informing future projects.

Director of Cumbria LEP Graham Haywood, said: “It is an exciting initiative which will bring a more collaborative approach between key local authorities on the northern M6 corridor.

“It should strengthen our position and help us to get the investment we need for transport and infrastructure improvements, especially to road and rail.

“We welcome the announcement that the Government is pressing ahead with its industrial strategy and look forward to this being rolled out with the White Paper due to be published shortly.

“As usual the devil will be in the detail and we will be looking at the finer points of this very closely to see where Cumbria could benefit.”

Businesses were also handed a boost when Mr Hammond announced a string of tax changes.

He said the Government would bring forward plans to swap the way it determines the annual increase of business rates from the higher Retail Price Index measure of inflation to the lower Consumer Price Index.

Those changes, set to be implemented by 2020, will now take effect in April 2018, resulting in a three per cent rise in business rates rather than a four per cent increase if it was indexed to RPI.

Mr Hammond said the move would save businesses a total of £2.3 billion over five years.

He said: “We have listened to concerns about the potential costs of the annual uprating of business rates in April and I will accept the representation of the CBI and other business organisations and bring forward the planned switch.”

In a move to support small pubs, Mr Hammond said he would also extend a £1,000 discount on their business rates for those with a rateable value of less than £100,000 for another year until March 2019.