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UK and China to announce 'Northern Powerhouse' deals Northern Powerhouse project has 'Chinese backing' - David Cameron
(35 minutes later)
The UK and China are set to announce a number of partnerships meant to "unlock the potential" of the government's so-called Northern Powerhouse project. The government's so-called Northern Powerhouse project is gathering strength and now has "Chinese backing", Prime Minister David Cameron has said.
The UK prime minister and Chinese President Xi Jinping are in Manchester on the last day of Mr Xi's state visit. It comes as the PM and Chinese President Xi Jinping are in Manchester on the last day of Mr Xi's state visit.
The first direct flights between Manchester Airport and Beijing and education deals will be announced. Mr Xi has visited Manchester University and joined the Mr Cameron at Manchester City's football academy.
Mr Xi has visited Manchester University and joined PM David Cameron at Manchester City's football academy. Deals for direct flights between Manchester and Beijing and education funding are also due to be announced.
Mr Xi earlier joined the Chancellor George Osborne for a visit to the National Graphene Institute at the University of Manchester.
The science institute leads research into graphene, a super-strong, flexible and electrically conductive material.
Speaking after the visit, Mr Osborne said billions of pounds of investment will be coming into northern England, saying there was now "unstoppable momentum" behind the Northern Powerhouse project.
Football academyFootball academy
Mr Cameron and Mr Xi met current and former Manchester City and Manchester United players, including Gary Neville, Patrick Vieira, Denis Law and Mike Summerbee, at the Manchester City football academy.Mr Cameron and Mr Xi met current and former Manchester City and Manchester United players, including Gary Neville, Patrick Vieira, Denis Law and Mike Summerbee, at the Manchester City football academy.
The president, who is reportedly a Manchester United fan, was given a tour of the club's 80-acre training complex and was shown the last-minute goal that clinched Manchester City the 2012 Premier League title.The president, who is reportedly a Manchester United fan, was given a tour of the club's 80-acre training complex and was shown the last-minute goal that clinched Manchester City the 2012 Premier League title.
Speaking after the visit, Mr Cameron told the BBC: "I think this is a great day for Manchester and a great day for the whole of the north of England."
"You can really see the Northern Powerhouse gathering strength and it's now got Chinese backing too," he added.
Mr Xi is attending lunch at Manchester Town Hall alongside Mr Cameron and business, civic and community representatives.Mr Xi is attending lunch at Manchester Town Hall alongside Mr Cameron and business, civic and community representatives.
Earlier he joined the Chancellor George Osborne for a visit to the National Graphene Institute at the University of Manchester.
The science institute leads research into graphene, a super-strong, flexible and electrically conductive material.
Mr Osborne said billions of pounds of investment will be coming into northern England, saying there was now "unstoppable momentum" behind the Northern Powerhouse project.
The leaders will also visit Manchester Airport, where the new Hainan Airlines route - which the UK government says will provide a £50m boost to the Manchester economy - will be announced.The leaders will also visit Manchester Airport, where the new Hainan Airlines route - which the UK government says will provide a £50m boost to the Manchester economy - will be announced.
It will be the first direct route from the UK to China outside London.It will be the first direct route from the UK to China outside London.
The visit comes as Mr Cameron seeks to promote the government's Northern Powerhouse agenda.
What is the Northern Powerhouse?What is the Northern Powerhouse?
Further deals set to be agreed include the appointing of a Beijing firm BCEG as main contractor for the Middlewood Locks regeneration project in Manchester. The company is expected to provide £4m to kickstart the project.Further deals set to be agreed include the appointing of a Beijing firm BCEG as main contractor for the Middlewood Locks regeneration project in Manchester. The company is expected to provide £4m to kickstart the project.
Education partnerships including schools and universities are also set to be agreed.Education partnerships including schools and universities are also set to be agreed.
Mr Cameron said China is a "key trading partner" for the UK, adding: "The partnerships being made today will see real investment going into the north. The visit comes as Mr Cameron seeks to promote the government's Northern Powerhouse agenda.
"This is all part of this government's plan to attract more investment and deliver economic growth to an area of huge potential." A series of investment deals have been signed during Mr Xi's four-day visit to the UK, including an agreement with EDF Energy and China General Nuclear Power Corporation (CGN) for a nuclear power plant at Hinkley Point, Somerset.
Chequers talks However, protests have also been held by groups unhappy with China's human rights record, including one outside Manchester Town Hall to coincide with Mr Xi's visit.
On Wednesday, the two leaders held talks at Chequers focusing on "domestic priorities and foreign policy issues".
Downing Street said they had agreed that early dialogue between the two countries could help find diplomatic solutions for global and regional security challenges.
China and the UKChina and the UK
What does China own in the UK?What does China own in the UK?
Banquets and tiaras: China reacts to Xi UK visitBanquets and tiaras: China reacts to Xi UK visit
China and 'the Osborne Doctrine'China and 'the Osborne Doctrine'
How China guards the Xi creation mythHow China guards the Xi creation myth
Can UK be China's best partner in the West?Can UK be China's best partner in the West?
Who is President Xi Jinping?Who is President Xi Jinping?
It comes as Mr Osborne is to announce new devolution deals for the North East of England. Chequers talks
On Wednesday, the two leaders held talks at Chequers focusing on "domestic priorities and foreign policy issues".
Downing Street said they had agreed that early dialogue between the two countries could help find diplomatic solutions for global and regional security challenges.
The visit to Manchester came as Mr Osborne announced new devolution deals for the North East of England.
The chancellor's measures will mean Newcastle and Sunderland, and Tees Valley will both vote in a directly elected mayor in 2017.The chancellor's measures will mean Newcastle and Sunderland, and Tees Valley will both vote in a directly elected mayor in 2017.
The North East deal will transfer powers over transport, strategic planning, employment and skills from Whitehall to the region.The North East deal will transfer powers over transport, strategic planning, employment and skills from Whitehall to the region.
It enables the authority to create an investment fund with an initial allocation of funding for capital financing of at least £30m a year for 30 years.It enables the authority to create an investment fund with an initial allocation of funding for capital financing of at least £30m a year for 30 years.
'Old model broken'
The Tees Valley deal will see its investment fund guaranteed at least £15m a year.The Tees Valley deal will see its investment fund guaranteed at least £15m a year.
"The old model of trying to run everything in our country from the centre of London is broken," Mr Osborne said.
"It has led to an unbalanced economy and made people feel remote from the decisions that affect their lives."
He added: "I am determined to end this situation and I want to thank those civic leaders who want to work with us to achieve it."