The medium term Economic Development and Inclusion Investment Plan 2009-14 aims to build on North Tyneside Council's work to 'close the gap'.

The plan, approved by cabinet members at their latest meeting, works around two main themes – more jobs, more businesses.

A report to cabinet said the plan aims to reverse the economic downturn, being delivered together with the council's partners, using both council and external funding.

Coun Frank Lott, cabinet member for economy and employment, said the main themes of the plan are creating economic growth supported by growing population, strong infrastructure and developing business employment opportunities.

"The primary emphasis will continue to be 'closing the gap' in North Tyneside and delivering our vision of an enterprising borough with an increased rate of business creation and survival and more people in employment," he said.

"Using core council funding – including £1m allocation to the 'more jobs, more businesses' initiative – and external funding it is intended to deliver significant results through a sustained programme of interventions over the next five years.

"The five-year £5.9m funded plan will lead to the council and other partners mainstreaming funding to continue to deliver activities that are most effective in developing and creating businesses, delivering training and skills and enabling residents to access employment opportunities."

Coun Lott also revealed that the borough was benefiting from new companies moving in and the diverse and mixed economy now found.

Several regeneration initiatives are being delivered, including Whitley Bay, North Shields Fish Quay and Battle Hill, while work is progressing on the North Bank of the Tyne regeneration.

However, the report highlighted a number of challenges to be met.

Worklessness remains high in disadvantaged areas with an average rate of 29.7 per cent in the five priority wards, compared to 13.5 per cent in the other 15 wards.

Business start up rates are still low compared to national figures and there is low entrepreneurial culture in disadvantaged areas of the borough.

The plan proposes a range of initiatives to address the challenges and raise aspirations and skills within communities.