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North East LEP Annual Review 2022-2023 Published

The North East Local Enterprise Partnership (LEP) has published its Annual Review detailing its activities during 2022-2023.

The LEP’s Annual Review highlights key achievements over the last 12 months and explores the new funding and decision-making powers that will be created as part of the North East Devolution Deal.

Particular achievements highlighted in this year’s report include the relaunch of the North East Evidence Hub, which brings together key data and evidence about the region to support decision making and to make evidence more accessible for stakeholders and partners across the region.

The report also describes how independent evaluation has demonstrated that businesses supported by the Growth Hub have achieved a £8.8k turnover per employee improvement and that overall, £292million additional Gross Value Added and 4,435 additional jobs have been added to the economy since 2017.

In Skills, the team has continued to make an impact locally and nationally in delivering the government’s technical education agenda for young people and adults, bringing together key regional stakeholders to develop and deliver a regional Apprentice Ready vision.

The LEP has also launched The North East Commercial Property Investment Fund, managed by FW Capital, this year. The fund provides loans of between £2 to £7 million to support new or refurbished grade A commercial office and industrial space. It is predicted that it will create up to £119 million investment over the next 15 years, creating 5,600 jobs and developing 140,000 sq m of commercial space.

Transport has always been central to the Strategic Economic Plan, lead fiercely by colleagues at Transport North East. The Annual Review details the significant investment that has been secured and released to drive forward the Transport Plan in 2022/23.

Helen Golightly, LEP Chief Executive Officer, said: “This Annual Review is full of activity that is driving forward our mission to deliver the North East Strategic Economic Plan. Our plan has always been to create 100,000 more jobs in the economy, of which 70% are better jobs, between 2014 and 2024 as we strive to create a stronger, greener and more inclusive economy for the region.

“It is currently a time of transition for the LEP following the exciting announcement of the North East Devolution Deal. The Annual Review details our commitment to a strengthened region-wide partnership working with colleagues to play our part in realising this ambitious, historic deal.”

Click here to view the 2022/23 Annual Review.

Home / Economic assets and infrastructure

Getting Building Fund support sees expansion of AirView Park Enterprise Zone

Two new state-of-the-art flexible workspace buildings are currently being built on the AirView Park development in Woolsington following a £944k investment from government’s Getting Building Fund.

Strategically located next to Newcastle International Airport, AirView Park aims to grow the number of businesses in the North East involved in international trade and attract inward investment from startups and SMEs keen to take advantage of the region’s global trade links.

When complete, the two workspaces that form part of Phase Two of the development will have the potential to support up to 100 new SMEs and provide the flexibility for businesses to expand and grow, creating more local jobs and providing a boost to the North East economy.

The £944k awarded to developer Tynexe Commercial Ltd from the Getting Building Fund ensured essential infrastructure works could be delivered during the coronavirus pandemic and construction of the new employment sites could continue.

Helen Golightly OBE, Chief Executive of the North East Local Enterprise Partnership, said: “By responding to the changes brought about by the pandemic and creating office space that meets the needs of businesses both now and in the future, the new developments at AirView Park have already generated a lot of interest.

“By focusing Getting Building Fund investment on key strategic sites like AirView Park, the North East LEP is helping to create the right environment for businesses to grow and create more and better jobs in the region.

“The development’s location next to Newcastle International Airport also supports the North East LEP’s ambition to increase the number of North East businesses that export goods and services from 6% to 9.5% by 2030.”

One of 21 Enterprise Zones sites across the North East, AirView Park aims to create more SME businesses focussed on growing and maximising trade and inward investment between North East England and the rest of the world. It also aims to attract UK or global companies looking to build or establish a strategic northern base, as well as fully support organisations wishing to take advantage of new and existing export routes.

The North East Trade and Export strategy – published in 2021 by the North East LEP, North East England Chamber of Commerce and Department for International Trade – showed approximately 4,500 businesses in the North East region (North East LEP and Tees Valley Combined Authority areas) currently export goods and services. Businesses in the North East LEP area that currently export goods and services typically generate over £15bn of revenue from exporting each year.

One of the new buildings will provide a dedicated Business Support Hub for North East SMEs, offering a physical service centre for export expansion. All key exporting services and resources will be co-located at the Hub, creating a launch pad for businesses to begin international trade.

The second building, Denyer Court, will offer multiple leased office units or a single occupancy HQ building.

Mike Clark, Director of Tynexe Commercial Limited, developers of AirView Park, added, “We are delighted to have the full support and backing of the North East LEP as the allocated grant funding has enabled us to progress the site at pace, delivering a high quality scheme to meet market demands at a time when needed.

“We are already receiving enquiries from potential new occupiers, some operating in emerging and fast growing industries, so we are very confident that Phase Two and AirView Park will become a key site for Newcastle and the wider North East economy.”  

Mark Hunt, Chief Financial Officer at Newcastle International Airport, said: “The Airport provides multiple daily connections to some of the largest airport hubs across Europe and the Middle East, seamlessly connecting businesses in the region to the rest of the world. AirView Park is a prime site that provides a lot of opportunity for growth, export links and inward investment. We are very much looking forward to the completion of the scheme and welcoming the companies that choose to locate there.

“Global trade relations are key to the continued growth of the North East, and as we begin to see a way out of the economic downturn, our export links with countries like Pakistan are very important. Collaborations and strategic partnerships linking local companies with those overseas can help deliver a stronger recovery and so Newcastle International Airport, as a gateway to international markets, very much supports discussions like this with potential trade partners.”

Newcastle City Council’s Cabinet member for Resilient City, Cllr Alex Hay, who has responsibility for jobs and the economy, said: “AirView Park is going to be an important generator of jobs being so close to Newcastle International Airport – the main gateway to the region.

“The construction of these two buildings will form a key part of that development and provide a further boost to the local economy once they are filled with small to medium-sized businesses, so I warmly welcome them.”

When complete, AirView Park will offer 175,000 sq ft of bespoke offices, tailor-made to suit businesses looking to relocate to more cost effective out of town premises. AirView Park is already home to the national headquarters of Bellway Homes plc.

The Getting Building Fund was established early in the coronavirus pandemic to kick-start the economy, create jobs and help areas realise growth opportunities coming out of the coronavirus pandemic. The North East Local Enterprise Partnership is managing £47m awarded through the Getting Building Fund to support capital investment across the North East. 

The two new state-of-the-art flexible workspace buildings supported by the Getting Building Fund are due to be completed by the end of the year.

For more information about AirView Park visit www.airviewpark.co.uk.

Find out more about the Getting Building Fund and the other funding programmes managed by the North East Local Enterprise Partnership.

Home / Economic assets and infrastructure

North East LEP investment aims to grow region’s battery sector

The North East Local Enterprise Partnership has awarded more than £90k through its Project Development Accelerator Fund to expand the work of a new partnership aimed at growing the North East’s battery sector.

The North East Battery Alliance (NEBA), which is led by Newcastle University, aims to build on the North East’s existing strengths in electrification, automotive, and advanced manufacturing to raise awareness of the North East as a leading hub for the battery industry and attract further inward investment.

NEBA will create an ecosystem in the region that includes research and innovation centres, education and skills organisations, the public sector, battery cell manufacturers, and the associated supply chain, to stimulate further growth in the sector.

The North East’s reputation as a burgeoning centre of battery research, innovation, skills and production led to the Faraday Institution opening a regional office in Newcastle upon Tyne (FINE – Faraday Institution North East) in 2021.

NEBA was created in response to the ongoing expansion of the North East’s battery sector, which will include Britishvolt’s lithium-ion gigaplant facility in Northumberland, and Envision-AESC’s gigafactory on the International Advanced Manufacturing Park (IAMP) in Sunderland / South Tyneside.

The North East’s five universities (Durham, Newcastle, Northumbria, Sunderland and Teesside) are collaborating to form work groups reviewing all aspects of battery production – from raw materials to recycling, to strengthen the region’s research offering in this space.

Professor Colin Herron CBE from NEBA, Newcastle University and the Faraday Institution North East (FINE), said: “The creation of a North East Battery Alliance is another important step in making North East England an internationally recognised centre for batteries, from mining to recycling, business support, research and skills. This announcement builds upon the recent decision of the Faraday Institution to locate its first regional office in Newcastle University. All the region’s universities together with CPI and the battery industry have a once in a generation opportunity to deliver a truly transformational activity for the region, supported by the North East LEP.”

Andrew Moffat CBE, Chair of the Investment Board at the North East Local Enterprise Partnership, said: “The UK has a legally binding target to reach net zero emissions by 2050. Expanding green and sustainable sources of energy is a key part of government’s net zero strategy.

“The North East is one of the leading destinations in the world for advancements in clean energy, and because of this our region has a significant role to play in delivering the UK’s net zero target.

“The NEBA will support the creation of more green jobs in the region and attract further investment in our energy sector. It will help build regional capacity and capability in every stage of the battery making process, from technological research right through to manufacturing supply chains.”

The initial funding awarded from the North East Local Enterprise Partnership will be used to design and develop plans for a dedicated NEBA office in the region, which will lead to the creation of new cutting-edge battery research facilities in the North East.

NEBA is a collaborative partnership comprising the deep tech innovation organisation the Centre for Process Innovation (CPI), Northumbria University, Durham University, Teesside University and Sunderland University. It also plans to establish links with other regional and national universities; training providers; The Catapult Network; the Faraday Institution; Driving the Electric Revolution; Innovate UK; UK Research and Innovation; and regional bodies such as the North East Automotive Alliance.

Tony Jackson, Director of Formulation at CPI said; ‘’We’re excited to be supporting the UK battery ecosystem to improve battery sustainability, performance, and longevity from optimising raw materials, to supporting reuse and recyclability. Using our high-tech facilities and research expertise we can identify healthier, more sustainable chemicals and higher-performing formulations to boost battery efficiency and reduce the impact on the environment. This funding for the North East Battery Alliance will position the North East a leader in green battery technology and bring the UK one step closer to critical net zero targets.’’

Professor Pam Thomas, CEO, Faraday Institution, said: “This is another positive move to further integrate the region’s battery ecosystem to clear the path from the research bench to innovation and commercial manufacture so that the UK can prosper in this energy transformation.”

Read more about the North East’s Energy for Growth strategy.

Home / Economic assets and infrastructure

Energy Minister visits projects putting North East at the forefront of Net Zero drive

As the North East is poised to become the UK’s first low carbon heat cluster, the government’s Minister for Business, Energy and Corporate Responsibility, Lord Callanan, is touring the region to see some of the projects which are leading the way in the nation’s drive to achieve Net Zero carbon emissions.

The visit follows the launch of three nationally significant activities in the region:

  • The first, a report highlighting the potential of mine energy for the UK published on behalf of the BEIS Energy Hub Network – which uses natural geothermal-heated water that has gathered in the underground networks of former deep coal mines – in helping the UK to achieve its Net Zero target by 2050.
  • The second is Gateshead Council’s Zero Carbon Heat Strategy, outlining its ambition to make all Council buildings and homes net zero by 2030, though major investment in heat networks, as well as supporting clean hydrogen and heat pumps.
  • And the third, is the launch of a ‘High Potential Opportunity’ to promote the North East and Tees Valley as an inward investment location for the UK in heat networks.

Andrew Clark, Energy Lead at the North East Local Enterprise Partnership (North East LEP), said: “The North East has an existing skills base, supply chain and infrastructure, plus a nationally-significant project pipeline, which means we are ideally positioned to make a huge contribution to the UK’s drive to achieve Net Zero.

“During today’s visit, we were able to showcase some of the globally-important energy projects which are taking place in our region, and demonstrate how the North East is on its way to becoming the UK’s first cluster for low carbon heat innovation, supply chain and delivery.”

Lord Callanan was able to meet beneficiaries of the Government’s Heat Networks Investment Project (HNIP); two mine water heat networks in the region are among those to have been awarded funding by Triple Point Heat Networks Investment Management in partnership with the Department for Business, Energy and Industrial Strategy (BEIS).

The Minister visited Seaham Garden Village district heat network in County Durham, which will supply low-carbon geothermal heat from former coal mines to a new development to the south of Seaham. It is hoped that the scheme will be a commercially viable sustainable energy demonstrator project that can be duplicated across the UK coalfields, which contain 25% of the UK population.

Energy Minister, and Heat Networks Industry Council Ministerial Champion, Lord Callanan of Low Fell said: “Heating our homes and workspaces without causing carbon emissions is going to be key to tackling climate change and heat networks are proving an effective solution as well as opening up huge potential for investors at home and abroad.“

These low-carbon technologies are allowing us to build back greener from the pandemic, and as the Heat Networks Industry Council’s Ministerial Champion, I’m excited to see the opportunities they are providing in the North-East. “As a native of this region, I’m well aware of how coal dug from under our feet powered the industrial revolution 200 years ago and it’s fitting that that legacy and heat taken from former mines is now helping drive forward a new Green Industrial Revolution.”

Councillor Mark Wilkes, Durham County Council’s Cabinet member for neighbourhoods and climate change, said: “We’re delighted to be part of the drive towards achieving Net Zero carbon emissions.

“The proposed district heating system at Seaham Garden Village will use ultra-low carbon energy from the former mine workings.  

“The use of this technology could be replicated in other parts of County Durham, the North East region and elsewhere across the UK’s former coalfield sites.” 

Also on the agenda was a visit to the Gateshead District Energy Scheme, which has been awarded funding to double its heat network, using geothermal energy from a network of old mine workings 150 metres below Gateshead to supply heat to homes and businesses. 

John McElroy, cabinet member for the environment and transport at Gateshead Council, said: “Our work on heat networks and harnessing geothermal heat shows our ambition to tackle climate change and reach our zero carbon goal by 2030.

“We already have a significant track record of investment in heat networks, so this is proven technology – now we need to move across to sustainable sources of energy and roll out zero carbon heating to a much wider audience across the borough.”

Ken Hunnisett, Project Director at Triple Point Heat Networks Investment Management said: “These two projects represent the first two mine energy schemes to be awarded HNIP funding and signify genuine levelling up in the North East in preparation for net zero. With mine energy ideally suited to district heating, the ability of our coalfields to provide clean, affordable and perpetually renewing heat should be a source of great national pride.” 

Richard Bond, Innovation and Engagement Director at the Coal Authority, said: “Using heat from former coal mines is an innovative way to decarbonise heating supplies, attract investment, create employment and lower energy bills. The Coal Authority is actively working with a number of partner organisations across the country, including the North East Local Enterprise Partnership, to help unlock the potential of mine water heat to make UK homes greener, warmer and more efficient.”

Also in Gateshead, Lord Callanan joined Anne-Marie Trevelyan, MP, Minister for Energy, Clean Growth and Climate Change who was officially opening Hydrogen House, the UK’s first house to demonstrate the use of hydrogen-fuelled appliances in a real-world setting, at Northern Gas Networks’ Low Thornley site. 

Andrew Clark added: “These projects are not just regionally significant; they’re leading the way for the entire nation and no doubt contributed to Government’s recent decision to select Heat networks in the North East and Tees Valley as part of the Department for International Trade’s High Potential Opportunities Programme (HPO). We now have a completed investment proposition to promote to foreign investors and drive investment into the region.

“We’ll continue to work with government, the energy sector in the North East, and our partners in Tees Valley, to push forward the work taking place in our region which will help the UK cut its carbon emissions and help tackle the issue of climate change.” 

On the High Potential Opportunities Programme, Minister for Investment, Gerry Grimstone said: “Our HPO programme is designed to showcase the best opportunities across the UK to international investors and attract investment that will help the UK build back better.

“Attracting investment into the UK’s clean growth industries like heat networks is critical, and with so many projects in the pipeline and such a fantastic ecosystem, the industry should take note of this huge opportunity. This programme along with the Global Investment Summit we are hosting in October will be a chance to show why the UK is a great place to invest in a greener future.”

Find out about the North East LEP’s work to support the North East energy sector here.

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New report highlights potential of mine energy in achieving UK net zero target

A new white paper published by the Mine Energy Taskforce and Local Energy Hub network has called for greater support for mine energy as a key low carbon heat source in the UK that can contribute to government’s ambition to reach net zero by 2050.

The report also outlines how the introduction of large scale mine energy schemes will support government’s ‘levelling up’ agenda by bringing immediate and direct economic benefits to coalfield communities and businesses across the country.

The Mine Energy Taskforce is a national coalition of cross-sector partners co-ordinated by the North East Local Enterprise Partnership that aims to share knowledge and expertise to accelerate deployment of mine energy schemes. The Local Energy Hub network brings together groups of Local Enterprise Partnerships in five different areas of the country to work together with Government to accelerate local energy schemes.  

The white paper was developed by the North East Local Enterprise Partnership (North East LEP) and funded by Department for Business, Energy and Industrial Strategy (BEIS), the North East, Yorkshire and Humber, and Midlands Energy Hubs, and the MCS Charitable Foundation.

Mine energy is the extraction of natural geothermal-heated water that has gathered in the underground networks of former deep coal mines. Over time, water is warmed to around 12-20°C.

Using heat pumps, some of the heat can be extracted and used to heat fresh water, which can then be used to provide low carbon heating and hot water for use in domestic and commercial buildings via heat networks, for example. According to the report, the heat from the water is abundant and widely distributed – and if managed correctly – can be constantly available at a self-sustaining and consistent temperature.

One quarter of the UK’s homes and businesses are sited on former coalfields. The Coal Authority estimates there is sufficient energy in the geothermal water found in former coal mines to heat all of the homes on the coalfields.

The report also highlights that the Coal Authority mine water treatment plants are the most convenient and cost-effective way of accessing mine water heat, though the heat can also be accessed via mine shafts and boreholes. If the 42 schemes currently identified in the Coal Authority’s pipeline were to be built, they would collectively generate projected carbon savings of 90,500 tonnes per annum.

Contributors to the white paper include leading academics, local authorities, the Durham Energy Institute, Coalfields Regeneration Trust, British Geological Survey, Coal Authority, the Environment Agency and the Department for Business, Energy and Industrial Strategy (BEIS).

Lord Callanan, Parliamentary Under Secretary of State at the Department for Business, Energy and Industrial Strategy, wrote the foreword for the white paper. He said: “At the heart of this Government’s agenda are three key priorities: the development of new and innovative sources of employment and economic growth, rapid decarbonisation of our society, and levelling up – reducing the inequalities between different parts of the UK.

“Mine energy, the use of the geothermally heated water in abandoned coal mines, is not a new technology, but it is one with the potential to deliver thousands of jobs and drive economic growth in some of the most disadvantaged communities in our country.

“This report demonstrates that if we only implement the 42 projects currently on the Coal Authority’s books, we will deliver almost 4,500 direct jobs and a further 9-11,000 in the supply chain, at the same time saving 90,500 tonnes of carbon.”

Andrew Clark, Energy Programme Lead at the North East LEP, who commissioned the white paper, said: “Decarbonising heat is one of the greatest challenges facing us today, particularly as economies transition to net zero.

“Some of UK’s largest mine energy projects are being developed in the North East, so it made sense for us to lead the exploratory work in this area. Building on our Energy for Growth programme, and with the support of other LEPs in the North East and Yorkshire and the Local Energy Hub network, we convened a Mine Energy Taskforce, which has grown to become a national community of interest with over 40 cross sector organisations around the UK sharing their extensive knowledge and experience.

“This white paper has been developed with extensive stakeholder engagement and we’re very grateful to everyone who has given time and expertise.

“The Government reports that our low carbon economy is predicted to grow four times faster than the rest of the economy to 2030 and we believe mine energy can be used to accelerate this further, while achieving our net zero aspirations.

“The North East has a rich mining heritage so we are well placed to tap into the potential benefits and opportunities presented by mine energy.”

In 2019 the UK Government became the first major economy to pass laws to end its contribution to global warming by 2050. Despite the compelling narrative of using the UK’s legacy fossil fuel infrastructure to support a local carbon future, mine energy is yet to be deployed at scale.

One of its key advantages is the potential environmental and economic benefits it provides in post-industrial mining communities, particularly those that have experienced significant economic and social decline. The white paper outlines how the 42 schemes already identified by the Coal Authority would create up to 15,227 new jobs and contribute £793m in Gross Value Added (GVA), including direct, indirect and induced economic effects.

Charlotte Adams, Commercial Manager at the Coal Authority said: “We were pleased to be invited to provide technical input to this Mine Energy White Paper. The Coal Authority owns and licenses access to the abandoned mining infrastructure. Reusing this infrastructure, which was created with huge human effort, offers a renaissance for coalfield areas through an opportunity to deliver low carbon heat and support regional economic growth.”

Adrian Ramsay, Chief Executive of MCS Charitable Foundation, said: “We were pleased to provide funding towards this report and welcome its findings.

“As a country we need to step up the drive for net zero emissions in homes and communities, and the report suggests that mine energy could play an important role in the mix of green energy sources. As with the green economy in general, there is significant potential for job creation and I hope the government engages with the report recommendations and the economic and environmental opportunities it highlights.”

Sally Gallagher, Technical Specialist for the Environment Agency in the North East, said: “We all have a role to play in tackling the climate emergency, which is why as an operator and a regulator, the Environment Agency has a leading role in helping the country get to net zero by 2050.

“The decarbonisation of energy used for heating is a significant challenge for the UK and we are pleased to support the launch of the paper on mine water energy, outlining the opportunities across the country to utilise this untapped low carbon resource.

“As the environmental regulator for England our role is to ensure renewable heat technologies are sustainable and do not adversely impact the environment. We look forward to continuing to work with the Mine Energy Task Force, Local Energy Hub network and Local Enterprise Partnerships to share the knowledge and experience developed in permitting mine energy schemes over the last couple of years.”

Michael Gallagher, Regional Energy Projects Manager at Midlands Energy Hub, said: “Mining used to be a significant source of employment and energy in the Midlands, driving the industrial revolution.

“This white paper was of interest to Nottingham City Council’s Midlands Energy Hub as it is a critical step in enabling the Midlands to realise the potential of Mine Water Energy, supporting the challenge of decarbonisation heat, alongside generating clean, green employment alongside driving down carbon emissions.”

Professor Jon Gluyas, Director of Durham Energy Institute, said: “I am delighted to see the publication of the Mine Energy White Paper from the Mine Energy Task Force and Local Energy Hub network. This comprehensive analysis of the potential for using abandoned, flooded and often forgotten mines to deliver sustainable, ultra-low-carbon heat is a critical publication; building upon an idea generated, researched and developed by Dr Charlotte Adams of Durham Energy Institute.

“Development of mine heat will not only help the UK meet its greenhouse gas emission targets, but also generate a new industry and supporting supply chain. The UK built many of its towns and cities where it mined its coal in the North of England, North Midlands and Central Scotland, reusing the old mines to deliver low-carbon heat will also help deliver the government’s levelling up agenda and attract further inward investment into the North. 

“With one project operational and several more due to be delivered in the next couple of years, the White Paper will act as a template for sustainable, heat energy delivery across the UK.”

The UK has taken a lead in mine energy, but to ensure its continued growth and subsequent decarbonisation and socio-economic benefits, the sector requires further national support and intervention.

Within the white paper are recommendations to move the sector beyond the need for public subsidy, to increase collaboration and knowledge sharing across stakeholders, and see targeted investments in research and development.

Its publication comes in advance of the UN Climate Change Conference, COP26, which will be hosted by Glasgow in November, and is designed to accelerate action towards the goals of The Paris Agreement and the UN Framework Convention on Climate Change.

Read The Case for Mine Energy – unlocking deployment at scale in the UK. A mine energy white paper.

Home / Economic assets and infrastructure

Investing in infrastructure key for North East’s economic recovery

By Darren Laybourn, Director and Regional Strategic Lead at Turner & Townsend, and North East LEP Business Growth Board member.

Manchester’s skyline is often used to illustrate how well the economy is performing in the North West. The sight of tower cranes and new buildings appearing across the city suggests a high level of confidence from inward investors, and a vibrant, growing business community.

The construction industry can be a good indicator of a region’s economic health, which is why there has been so much focus on infrastructure and building back better from the coronavirus pandemic.

During the first national lockdown, the construction sector was one of the few areas of industry able to fully continue working. Government further bolstered the sector by investing millions of pounds in supporting infrastructure projects across the UK, including here in the North East, through the Getting Building Fund.

A booming construction sector gives confidence to the business community, particularly startups and SMEs. It encourages businesses to continue to invest in staff, which is vital in helping retain skills and talent in the region.

The UK’s exit from the EU has brought about new labour regulations that if not managed correctly, may result in a shortage of skills in some areas of the country. At a time when we’re looking to recover quickly from the coronavirus pandemic, it’s important we don’t develop a regional cold spot in terms of skills and labour.

The construction industry in the UK accounts for 10% of total UK employment – approximately three million jobs.* It also supports a wider ecosystem including delivery partners, supply chains – even coffee shops that serve workers on their lunch breaks. And it doesn’t stop there. The construction industry is the catalyst for creating new jobs in the longer term too, be that through new office spaces, business parks, enterprise zones, etc.

Cities like Manchester, and Leeds have gained the confidence of investors and the business community. That’s reflected in the amount of investment in new infrastructure projects across both destinations. If we’re going to compete with that we must maintain a good base of capital projects in the region and build back from the coronavirus pandemic.

There are already some fantastic examples of regeneration in North East England. Newcastle Helix has helped grow the region’s health and life science sector by creating an environment where academia and business can collaborate and drive forward innovations in data science, urban science and life science.

In Newcastle upon Tyne, work is beginning at pace on the transformation of East Pilgrim Street. The £100m project will introduce new offices, bars, restaurants, car parks, and housing in the city centre. The first phase of the project will see the creation of a new landmark, 14-storey, Grade A office building.

Across the river in Gateshead, the £290m NewcastleGateshead Quays regeneration scheme is expected to create around 2,000 new jobs in the North East and provide a £60m annual boost to the local economy.

Projects of this scale and ambition have increased confidence in the North East, resulting in more inward investment and more job creation, which maintains and, in some cases, grows those important skills.

The focus of the North East Local Enterprise Partnership on investment and infrastructure is at the heart of the region’s Strategic Economic Plan. Moving forward, we need to continue the successful delivery of funding programmes in the North East – including the Local Growth Fund. We also need to develop a regional project pipeline and support SMEs in the North East to bid for local work.

Earlier this year the North East COVID-19 Economic Response Group – which comprises the North East LEP, CBI, North of Tyne and North East Combined Authorities, the region’s universities, with the support of industry – submitted its North East Recovery and Renewal Deal to government, asking for a £2.8bn investment to support the North East’s economic recovery from COVID-19.

Building infrastructure to lead transformation and encourage future investment is a key theme in the deal. It is this that will help the region bounce back from the coronavirus pandemic and support future growth and investment in the North East.

Darren Laybourn is Director and Regional Strategic Lead at Turner & Townsend, and a Business Growth Board member at the North East Local Enterprise Partnership

*(source: https://www.designingbuildings.co.uk/wiki/UK_construction_industry)

Home / Economic assets and infrastructure

North East Coalition files world-class Freeport bid

North East England Freeport to create 60,000 jobs, over £3.4bn GVA and £2.7bn private sector investment.

A dynamic business and public sector partnership based in the UK’s leading export region has lodged an exciting and innovative bid for the North East England Freeport, which economic experts have predicted would generate a £2.1 billion boost to UK exports, plus many other significant benefits.

Government support for the proposal would see the North East England Freeport provide a uniquely ambitious and collaborative opportunity for the whole region to thrive, boosting the local economy by over £2.4 billion over 10 years and providing a gateway to long term global competitiveness. Through the North East England Freeport, over 30,000 new jobs are expected to be created for the region, of which 13,000 are highly paid ‘better jobs. A further 31,000 jobs will be generated in the construction industries.

The regional consortium formed to operate the North East England Freeport as a virtual free trade zone includes Nissan, the Ports of Tyne, Blyth and Sunderland, Newcastle Airport, seven local and two combined authorities, the North East Local Enterprise Partnership (LEP), plus leading north east universities and innovative organisations. The sites involved will be inter-connected and secured using a state of the art, cybersecure perimeter.

Economic analysis completed by consortium members and validated by an independent economic adviser demonstrates that the North East England Freeport would deliver outstanding economic benefits to the region. These include:

  • 61,458 new jobs across the construction, manufacturing, logistics, energy, innovation and business sectors
  • £3.4 billion GVA across the local region
  • Expected GVA of £110,000 per freeport worker, with median earnings of freeport workers 40-62% higher than current regional levels across all sectors
  • Total GVA uplift of £3,000 per capita within the North East LEP area
  • £2.7 billion in new regional private sector investment
  • £2.1 billion additional UK exports over 10 years

By generating tens of thousands more and better jobs, the North East England Freeport will become a national hub for global trade and investment, a hotbed for innovation, a catalyst for sustainable economic regeneration, while minimising barriers to trade. Each site and partner in the freeport bid consortium will contribute to realising a best-in-class offering that will drive investment and deliver a high impact, economic boost that fully exploits the North East’s unique abilities in advanced manufacturing, life sciences, digital, clean energy and business services.

Crucially, the North East England Freeport will provide a bold blueprint for growth, compromising of a multi-site, digitally connected and enabled cybersecure boundary area, with robust customs zones. This will enable the North East region’s clusters to manufacture goods cost efficiently and trade internationally, benefiting from tax advantaged policy to stimulate economic development. It will contribute to levelling up in one of the areas of the country where it is needed the most.

The North East England Freeport will include three significant tax sites totalling approximately 600 hectares on which businesses will be able to receive a range of special incentives to invest and grow. They are located in some of the most deprived communities in the region and will create new jobs and supporting skills and employability programmes to ensure jobs are accessible to local people. The activity from these businesses will generate benefits across the region.

The Freeport will be led by a collaborative Governance Board which will bring together leaders from business, local government, higher education and the ports to drive forward the North East England Freeport at pace. This demonstrates the regions determination to deliver long term transformation and commitment to level up the UK economy.

Matt Beeton, CEO at the Port of Tyne and Interim Chair of the North East England Freeport, said: “Our model offers an unrivalled, ‘best of all worlds’ approach, uniting the private and public sectors to provide the region with an exceptional opportunity to benefit from the levelling up potential of digitally enabled economic zones. Developing over 60,000 new jobs in the region and £3.4bn regional GVA is incredibly important and demonstrates that ports are a catalyst for future economic growth.”

Martin Lawlor, CEO at the Port of Blyth said: “This bid consortium offers unrivalled clean growth and manufacturing expertise, and we have the vision, ambition and experience to make this a flagship freeport the UK can truly be proud of. We are excited by both the innovation within our bid and the transformative impact our freeport will have on the region if we are successful.”

Nick Jones, Chief Executive Officer of Newcastle International Airport, said: “Fast and frequent connections to growth markets are key to the success of the freeport and the advancement of the North East’s key business sectors. Air connectivity will strengthen the North East England Freeport proposition and will help to drive productivity improvements through logistics supply chains, with the ultimate aim of supporting the growth sectors in the region – from pharmaceuticals and life sciences to technology and advanced manufacturing. The Airport is delighted to play a role in the across-region partnership that will deliver this project.”

Lucy Winskell, Chair of the North East LEP said: “The North East is a perfect candidate for a freeport given its trading pedigree, its capabilities in green industries and the challenges it faces.  Our model is deeply collaborative and highly innovative. Our seaports, airport, businesses, universities and political leaders are working together to deliver a cutting edge, digitally enabled freeport which brings new growth across our region and regenerates many of the communities that need it most.”

Jamie Driscoll, Mayor of North of Tyne said: “The North East has always been a strong manufacturing and exporting region.  We want to secure the future for our workers, our kids and our grandkids.  This means developing our low carbon industries and building a green future.”

Councillor Graeme Miller, Chair of North East Combined Authority said: “This is a highly collaborative and compelling bid with the ability to transform the whole of the North East. Crucially, it provides significant opportunities for Nissan and the International Advanced Manufacturing Park (IAMP).”

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In conversation with Paul Butler, Chief Executive of the North East Automotive Alliance, about the arrival of 5G and what it means for the North East

The North East LEP and the North East Combined Authority have long seen the opportunity for the North East offered by 5G technology. Can you explain what 5G technology is and how it works?

5G follows in the footsteps of 3G and 4G as the new generation of wireless technology. As well as being much faster, it also has greater capacity, which is why it’s so exciting. 5G has the potential to support new innovative services in all areas of our lives.

I believe there’s a real opportunity for the North East to become a regional test bed for 5G technologies, which is illustrated in the North East LEP’s innovative plan for a multi-site, digitally enabled Free Trade Zone.

The North East Automotive Alliance, of which you’re Chief Executive, along with your partners recently secured more than £2m in funding for a 5G technology pilot project. How will this be used and why is this such a coup for the region?

The continual drive for operational efficiency is a key focus for the automotive sector. This project addresses the next key innovation challenge in last mile logistics and builds on regional expertise in the deployment of automated logistic solutions such as indoor and outdoor automated guided vehicles which are used throughout the production process.

The funding we’ve secured from 5G Create, part of the wider £200 million 5G testbeds and trials programme (5GTT), is to support a 5G-enabled connected and automated logistics (CAL) pilot and proof of concept. Working with Nissan and Vantech, we plan to test an autonomous HGV, up to 40 tonnes, on a private road capable of carrying out 100 deliveries a day. 5G technology would remove the need for an in-vehicle safety driver, replacing it with a remote driver that can interact with vehicle should it come across an abnormal situation.

We anticipate this project will be a catalyst for something great for our region, a globally unique CAL test bed here in the North East. We have a unique mix of assets including a geographic concentration of manufacturing facilities, a fantastic road infrastructure and the new International Advanced Manufacturing Park, which offers the perfect environment to design, develop and manufacture the next generation of logistic solutions. When combined with our vehicle electrification strengths, this has the potential to deliver Zero Emission Automated Logistics, delivering against the UK Government’s Net Zero 2050 strategy and supporting the region’s economic recovery from the coronavirus pandemic.

How does this pilot project fit with the North East’s Strategic Economic Plan?

It’s about delivering operational efficiency to the automotive sector initially, but then extending it to other areas of advanced manufacturing in the region to really drive productivity and efficiency.

In addition, by attracting more R&D activities it will support the NEAA’s vision to become the location of choice for automotive investment in Europe, and a region that is recognised as a true automotive powerhouse with a very dynamic, forward looking and competitive supply chain; with strengths in research, development, and innovation in new automotive technologies and manufacturing processes.

This will undoubtedly support the key objective of the North East’s Strategic Economic Plan – to deliver 100,000 more and better jobs for the North East.

What difference will 5G technology make for businesses?

The North East automotive sector is a beacon of productivity; we have one of the most productive workforces across Europe and high levels of automation. My interest in 5G is around how it can support industry and specifically industrial digitisation.

A recent study by SMMT and KPMG stated the cumulative economic benefit of adopting digital technologies to the UK automotive sector could be £74bn by 2035. I’ve also seen a recent case study related to an overseas company that has delivered a 50% increase in productivity, a 22% increase in automation, and 27% increase in innovation over the past two years as a direct result of 5G and industrial digitalisation.

The combined opportunity of 5G and industrial digitalisation will enable businesses to realise the next significant step change in operational efficiency. As a result, North East businesses will become leaders in the adoption of digital technologies and this will make them more resilient and more competitive, securing their longer-term future.

What opportunity does this hold for the North East’s future?

The North East has ambitions to expand 5G across the region and position the region as the centre for 5G deployment in the UK. Sunderland, for example, is already committed to the expansion and rollout of 5G. The technology is currently being deployed across parts of the Nissan plant in readiness for the 5G CAL pilot and across the city centre.

I believe we have a once in a lifetime opportunity to align regional ambitions and government strategy to really capitalise on the opportunity 5G provides. This will support industry and improve regional competitiveness, attract more R&D activity, improve regional capability, and help attract more talent to the region.

Home / Economic assets and infrastructure

North East LEP confirms North East Free Trade Zone bid

The North East will be submitting a Free Trade Zone bid designed to drive forward the regional economy, protect and enhance trade and investment potential and regenerate key sites in response to Government’s Free Ports bidding prospectus, announced this week.

Lucy Winskell, chair of the North East Local Enterprise Partnership (LEP), confirmed that a collaborative bid is being prepared following months of preparatory work with a range of partners including the Port of Blyth, Port of Sunderland, Port of Tyne, Newcastle International Airport, North East and North of Tyne Combined Authorities, Business Durham, the CBI, the North East England Chamber of Commerce, University of Sunderland, Durham University, Newcastle University, Northumbria University, The Offshore Energy Catapult and NEXUS.

Lucy said: “Freeports offer the potential to generate new employment, revitalise our coastal areas and significantly boost the local economy. Over the past few months, we have been working very closely with a range of partners to prepare the ground for a collaborative bid which underlines the ambition and determination of the region to succeed.

“A North East Free Trade Zone bid will give us the opportunity to build on our industrial and logistics assets, support our supply chains and clusters and demonstrate our range of digital and innovation capabilities.

“The Government is committed to levelling up the UK economy with a focus on strengthening the economies of key industrial heartlands, such as the North East. This proposal will shore up some of our most disadvantaged communities. The region is working together to seize this opportunity to show why we are deserving of Freeport status and how it will strengthen our position on the national and international stage.”