Pockets of poor public service outcomes in the North East are to blame for the region's poor outcomes overall, according to the Institute for Public Policy Research North.

The report is the first submission to the new Commission on Public Service Reform in the North East, launched by the institute today.

The Audit of Public Service Reform, which analyses investments and outputs over the last decade, shows that while public investment has resulted in improvements in the region, stark sub-regional variations are preventing the North East from improving its regional standing relative to other regions.

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