Local authorities in the North East should develop closer ties with their counterparts in Scotland to share resources and benefit from greater Scottish independence.

A report by the Association of North East Councils (ANEC) recommends joint working across a number of areas, including transport, energy and rural development, as well as closer tiesbetween local enterprise partnerships and Scottish Enterprise to
attract investment.

The report says there is an opportunity for local authority to ‘consider collaborative approaches to European funding' on issues such as broadband and tourism.

It also warns there are concerns the North East could lose out on public sector investment if the UK government ‘bendsover backwards' to tempt Scottish voters to vote in favour of staying in the union, in the run-up to the independence referendum, which will be held in September 2014.

‘I could imagine our region making common cause with Scotland on many issues, and our region's economy benefiting from stronger links with a resurgent Scotland,' said report author, Prof Keith Shaw.

‘We've been used to looking to London and the South East,' added Prof Shaw.  ‘Not it's time to seek stronger connections with our neighbours in Scotland.'

The report also recommends working with public sector organisations to develop a joint approach to HS2 and discussions over the East Coast mainline route.

It also calls for ANEC to set up a strategic forum to bring together private and public sector partners in the region to discuss issues and develop ways of collaborating.

‘North East Councils have agreed to actively pursue areas for potential collaboration and utilise opportunities to maximise benefits for the people of the North East,' said ANEC chair, Cllr Paul Watson.