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North East LEP Budget 2020 reaction

Andrew Hodgson, Chair of the North East Local Enterprise Partnership (North East LEP), today gave his reaction to the Budget delivered by Chancellor of the Exchequer, Rt Hon Rishi Sunak MP.

“This was a budget covering both immediate and longer-term economic priorities, with a number of specific announcements set to benefit the North East and support us to create 100,000 more and better jobs in the region.

“Firstly, we are pleased with the announcement of a wide-ranging package of support for businesses to help counter the impact of COVID-19 including Statutory Sick Pay to be refunded by government for up to 14 days for businesses with under 250 staff, and the temporary Coronavirus Business Interruption Loan Scheme, which will support businesses to access bank lending and overdrafts.

“The Chancellor has also laid the groundwork for accelerating economic growth and development over the course of this parliament and beyond.

“We welcome the announcement of £198m allocation to the North East from the Transforming Cities Fund, including £95m for frequency and reliability improvements across our Metro system. The announcement that how the A1/A19 north of Newcastle can be improved will be considered, and future funding and devolution to improve transport within our region, are also positive. We look forward to working with government to clarify the details over coming months.

“Up to £387m has been committed in 2021-22 to provide certainty for local areas that they can continue with projects that are funded by the Local Growth Fund, and decisions on the future of the regional funding will be made at this summer’s Comprehensive Spending Review.

“Over the longer term, we are pleased that government has recognised the importance of investing in the drivers of productivity. These are also set out as priorities in the North East Strategic Economic Plan.

“Investment in R&D is being stepped up nationally to £22bn by 2024 and we welcome the review of the distribution of this funding. We hope this will ensure stronger opportunities for science, research and innovation investment in our area. Key technologies for the future including electric vehicles and life sciences have been recognised, in which the North East has particular strengths.

“The announcement of a number of actions to support businesses, including improvements to access to finance for start-ups and SMEs, and help with exporting, is positive news for the region. We are also pleased that the government has recognised the strategic importance of the Growth Hub network, committing an additional £10m across England.

“We are pleased that the North East is benefiting from efforts to continue to strengthen digital connectivity in our region. North of Tyne has secured £12m through the Local Full Fibre Networks Challenge Fund – another factor which underpins our drive to increase productivity.

“And finally, locating a decision-making campus for HM Treasury and other government departments in the north is something we look forward to discussing with government. It is a signal that they understand the need for government to have a closer relationship with the north. We will also work closely with government to ensure that the North East benefits from today’s announcements as more detailed plans are brought forward.”

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North East Local Enterprise Partnership reaction to ONS regional labour market statistics – January 2020

The North East Local Enterprise Partnership (North East LEP), has commented on today’s regional labour market statistics, released by the Office for National Statistics.

The data covers both the North East LEP and Tees Valley LEP areas and is for the August to October 2019 quarter.

In addition, Annual Population Survey data for the period October 2018 to September 2019 has also been released.  This dataset is available at the LEP-level and is used to measure progress against four of the North East LEP’s targets.

Senior Economist, Victoria Sutherland said, “Today’s labour market statistics show a mixed picture.

“Looking first at the regional labour market statistics, this shows that there has been a small decline in the number of people employed across the North East region over the last three months, with 2,000 fewer people in work in September to November than between June to August.”

“Over the same period, unemployment increased by 5,000, whilst the number of people that are outside the labour market – those who are not actively seeking work for a wide range of reasons, including full-time study, looking after family and home, disability and ill-health, and retirement – has decreased by 3,000.

“As we have previously highlighted, the last year has been characterised by a high degree of fluctuation with labour market conditions improving in some quarters and deteriorating in others. This fluctuation has been observed in all regions and nations of the UK, but the North East appears to have been particularly hard hit with the largest increase in unemployment rate over the last year. The North East is also one of only three English regions to have seen a decrease in its employment rate for 16 to 64-year olds.

“Looking at longer term trends, the North East LEP set itself a target of increasing the number of jobs in its area by 100,000 between 2014 and 2024, and for 70% of jobs created to be ‘better jobs’, defined as managerial, professional and technical roles. Today’s data covers the period October 2018 to September 2019 and shows that the number of jobs in the North East has increased by 73,100 since our baseline of April 2013 to March 2014. The increase in managerial, professional and technical roles has been 73,900 – meaning that all of the jobs growth has been in these ‘better jobs’ whilst there has been a small decrease in other jobs areas such as administrative and retail. There has been particularly strong growth in managerial, professional and technical jobs over the last year, with an increase of 24,500.

“The North East LEP will continue to work with its partners to deliver more and better jobs for the region through the Strategic Economic Plan. We will work to secure commitment from the new government to unlock investment to allow the region to create new opportunities for businesses and residents.”

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North East LEP appoints three new members to its Board

The North East Local Enterprise Partnership (North East LEP) has announced three new appointments to its Board.

Founder and MD for Fusion PR Creative, John McCabe, and TSG Marine Operations Director, Erika Leadbeater, replace outgoing Board members David Land and Farooq Hakim. Carol Botten, Chief Executive of VONNE (Voluntary Organisations’ Network North East) also joins the North East LEP Board to ensure the region’s voluntary, community and social enterprise sector (VCSE) is better represented.

Andrew Hodgson, Chair of the North East LEP said: “As well as playing an active role in helping deliver the North East Strategic Economic Plan, our Board represents the views and opinions of the North East’s public, private, education and VCSE sectors.

“They help ensure we work in the best interest of the region and deliver our aim of creating 100,000 more and better jobs by 2024.

“On behalf of everyone at the North East LEP, I’d like to welcome Erika, Carol and John to the Board. They are all hugely respected in their fields and their contribution to our work in growing the North East economy will be invaluable.”

John McCabe is the current chair of Gateshead College and immediate past president of the North East England Chamber of Commerce. He has held senior positions at some of the North East’s largest organisations and launched strategic communications agency, Fusion, in 2013.

John said: “I hope my experience of working in and with businesses large and small, of setting up my own business and of negotiating at the highest levels of government will be of value to colleagues across the North East LEP and to the wider region.

“The new government has made a number of eye-catching commitments to our region and the North East LEP will have a key role to play in ensuring these are met, enabling economic growth and ensuring more people in the North East can achieve their full potential.

“The North East LEP has an exciting agenda and I’m really looking forward to playing my part in its delivery.”

Erika Leadbeater is Operations Director at South Tyneside-based TSG Marine, which delivers marine access services to the offshore energy sector. Erika began her career as a private practice solicitor specialising in shipping and the carriage of goods before joining TSG Marine in 2013. Erika is an advocate for small businesses and a member of the UK Government’s SME Advisory Board.

Erika said: “I know from experience that the North East is a great place to live and work. In fact, when our business was getting started, we chose to base ourselves in the region due to its strategic location, the skills of local people and the support for small businesses. I am honoured to be joining the team at the North East LEP to support the great work being undertaken to grow the economy, create jobs and promote the region.”

Carol Botten has been CEO of VONNE since September 2018 following four years as Deputy CEO. With almost 25 years’ experience in the voluntary and community sector, Carol is passionate about supporting the sector’s leadership and governance capabilities and developing new programmes and projects to increase organisations’ sustainability and resilience.

She is a member of the North East Skills Advisory Panel, as well as a member of Northern Powergrid’s Social Issues Expert Group and Stakeholder Panel, the North East Brexit Group and the Cabinet Office’s National Leadership programme.

Carol said: “I am delighted to have been selected to represent the VCSE sector on the North East Local Enterprise Partnership Board.

“I have worked closely with the organisation for a number of years as a member of the Skills Advisory Panel and on recent refreshes of the North East Strategic Economic Plan, so I have a strong understanding of the LEP, its role and key strategies for the region.

“I look forward to developing that relationship further and advocating for the role that VCSE organisations have to play in the economic development of the region and to encourage an inclusive approach, to ensure all communities and individuals can benefit from economic development activities.”

The North East Local Enterprise Partnership (North East LEP) is a public, private and education sector partnership that works with businesses, partners and stakeholders in the region to deliver the North East Strategic Economic Plan, growing a more productive, inclusive and sustainable regional economy.

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North East Local Enterprise Partnership reaction to ONS regional labour market statistics – December 2019

The North East Local Enterprise Partnership (LEP), has commented on today’s regional labour market statistics, released by the Office for National Statistics.

The data covers both the North East LEP and Tees Valley LEP areas and is for the August to October 2019 quarter.

Senior Economist, Victoria Sutherland said, “Today’s labour market statistics for the North East region are a disappointing end to the year.

“The number of people in employment has declined by 10,000 compared to the previous quarter and by 14,000 over the year.

“Looking at the decline over the quarter in more detail, it’s notable that this decline has been driven by fewer men in employment – with 16,000 fewer in work – whilst the number of women in work has increased by 6,000.

“Unemployment has increased by 15,000 over the last three months and by 9,000 over the year. The unemployment rate is now 6.1% and is the highest of all UK regions.

“2019 has been characterised by slower employment growth across the whole of the UK than in previous years and by fluctuation and variation across the country. The North East has been affected by the uncertainty in the economy.”

Commenting on the statistics, Andrew Hodgson, Chair of the North East LEP, said: “2020 will be a key year for the North East. The North East LEP will continue to work with its partners to deliver more and better jobs for the region through the Strategic Economic Plan. We will work to secure commitment from the new government to unlock investment to allow the region to create new opportunities for businesses and residents.”

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North East business community and economic partners have their say on Local Industrial Strategy

Businesses in the North East this week contributed to the development of the region’s Local Industrial Strategy (LIS), which will set out how the region and government will work together to deliver increased productivity and living standards in the North East.

During the North East Local Industrial Strategy Summit, co-ordinated by the North East Local Enterprise Partnership (LEP), plans for the strategy were laid out to an audience which included representatives from the North East business community, academia and local government.

Andrew Hodgson, Chair of the North East LEP, said: “The North East has been selected by Government as one of six areas to be the first to develop Local Industrial Strategies.

“The North East’s strategy will be ambitious and outward-looking, demonstrating how we will use our strengths as a region to increase productivity and improve the earning power and quality of life for people who live here.”

The North East LIS will complement the UK’s overarching Industrial Strategy, which aims to boost UK productivity, and use investment in skills, industry and infrastructure to create jobs and increase the earning power of people across the UK.

The LIS will include details on how the region can capitalise on opportunities presented by sector deals in areas such as clean growth and ageing society, and plans for the North East to forge links in international markets, increase inward investment and capitalise on international trade.

At the summit, businesses took part in a series of discussions themed around topics including infrastructure, energy and advanced manufacturing, contributing their insights and ideas to the development of the strategy.

“At today’s summit we presented the evidence and research which will form the basis of our LIS and we heard from some of the partners who are helping to inform its development.

“This strategy is an opportunity to demonstrate how the North East can capitalise on opportunities and really make its mark on the world, and it’s important that the business community has a say on its development. That’s why it was so encouraging to see so many people, who will be vital in making this vision a reality, actively involved in the event today,” added Andrew Hodgson.

Speakers at the summit included Ariel C Armony, Ph.D, from the University of Pittsburgh in the USA, who shared lessons from the Pittsburgh region’s delivery of increased productivity; Joaquim Oliveira Martins from the OECD Centre for Entrepreneurship, who discussed how all regions can benefit from increases in jobs and productivity; Tony Danker from Be The Business, who talked about the UK campaign for productivity and competitiveness; Mayor Jamie Driscoll, North of Tyne Combined Authority; and Cllr Iain Malcolm, Chair of the North East Combined Authority and Leader of South Tyneside Council.

The development of the North East LIS is being led by the North East LEP. The LIS will complement the North East Strategic Economic Plan – the key economic policy document for the region, which sets out the plan for adding 100,000 more and better jobs to the North East economy by 2024.

Find out more about the development of the North East Local Industrial Strategy.

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North East Ambition – LEP leads way with two new Careers Hubs for the region

In line with the Secretary of State for Education’s announcement today [Monday 20 May 2019] that a model designed to transform careers education has been given a £2.5m boost, two new Careers Hubs – one for Schools and another focused on Special Educational Needs and Disability (SEND) – are coming to the region.

Secured and hosted by the North East Local Enterprise Partnership (LEP), the move recognises the success of two Hubs established here when the first wave were introduced across England in July 2018.

A Careers Hub already successfully services 40 secondary schools, while a regional College Hub, the only one in England, services nine FE colleges and one sixth form college.

The aim of the new School Hub is to extend the work already started in the Careers Hub and support a wider range of schools to achieve the benchmarks, while the SEND Hub is being introduced to pilot how the implementation of the Gatsby benchmarks can be made relevant and effective for special needs learners.

The move means that the North East LEP can work intensively with 91 schools and colleges across its catchment area.

Underpinning the Hubs are eight Gatsby Career Benchmarks, which the North East piloted, and provide a clearly defined framework for ‘Good Career Guidance.’

Each one supports the North East LEP’s Skills initiative, North East Ambition, which aims to ensure each and every student in the region has access to high quality careers education and all secondary schools and colleges in the North East are achieving the Benchmarks by 2024.

Schools and colleges enrolled in the Hubs work with universities, training providers, employers and career professionals to improve careers information. They can access a Central Hub Fund, equivalent to around £1k per school or college, with additional support available, including access to training for career leaders and enhanced employer encounters.

Andrew Hodgson, chair of the North East LEP, said: “The North East LEP passionately believes in opportunity for everyone and it is a hugely positive step that we are able to support the Government’s national Careers Strategy through the introduction of these two new Hubs.

“Ensuring a pipeline of skilled talent is available to business and that local jobs are available to keep talent in the region is crucial if the LEP is to achieve its objective of creating 100,000 more and better jobs for the North East by 2024.

“The fact that this will improve the prospects of young people in another 50 schools in our region shows how successful our Skills programme has been to date and places us well on to the road to an even stronger future economy.”

The Rt Hon Damian Hinds MP, Secretary of State for Education, said: “It is so important that young people get to know about a range of different jobs and careers so they can see the possible opportunities out there. Good careers education is such a valuable asset that helps children to explore future possibilities and go on to lead happy rewarding lives.

“Careers Hubs bring together schools, colleges, universities and employers to share their expertise and improve the careers education on offer to make sure young people have the information they need to make the most of their talents.

“Today’s investment will give thousands more young people access to expert careers support as they take those first exciting steps into their future.”

For more information about how the North East LEP is improving skills in the region, visit www.nelep.co.uk/skills.

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Andrew Hodgson on the new offshore wind sector deal laid out by Government

The new offshore wind sector deal between the Government and industry will provide support for this vital and vibrant part of the UK economy over the next 10 years. It’s a sector in which the North East has particular strengths and our Strategic Economic Plan identifies offshore wind as an area of strategic importance for the North East, with the potential to create more and better jobs for the region and to build on our already globally important offshore energy and subsea cluster.

The government has recognised these strengths, with the North East being selected as one of the geographical clusters of the industry which the sector deal will focus on, and be delivered through, providing support across areas including skills, innovation and infrastructure.

This sector deal has the potential to be transformational, leading to the creation of new, high-skilled jobs in our region, supporting our work towards clean growth, and strengthening what is an area of significant export opportunity for the UK – especially important as we move towards a post-Brexit environment.

One example of a project which is set to benefit the North East is Dogger Bank which, when complete, will be the world’s biggest wind farm. Initial projections carried out by the Forewind consortium showed that the North East, Yorkshire and the Humber could see between 4,500 and 7,300 new jobs created and between £1 billion and £2.2 billion additional GVA to 2029 – this is exactly the kind of opportunity which will be supported by this new sector deal and demonstrates the huge potential value of the offshore wind sector to the North East.

It’s important that we work together to contribute to the deal as a region. Cross-sector collaboration and alignment is vital in ensuring that we make the most of the opportunities presented. The North East LEP is already working with partners in the public and private sectors, the sector supply chain and academia to help shape the regional energy agenda and create an aligned approach. We are also developing the North East Local Industrial Strategy (LIS) which will embed innovation across the North East and create strong links to the offshore wind sector.

I look forward to working with our partners to capitalise on the opportunities presented by this new sector deal and to pro-actively contributing to the deal as a region.

Andrew Hodgson, Chair of the North East LEP.

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North East LEP publishes updated Strategic Economic Plan

The North East Local Enterprise Partnership (LEP) has today (Thursday 14 February) published its updated Strategic Economic Plan, which outlines how it will help create 100,000 more and better jobs for the region by 2024.

The newly updated plan reflects on recent changes to the global and national economy as well as the UK’s imminent departure from the European Union. It also looks at how the North East can maximise opportunities around the UK’s Industrial Strategy, particularly in areas such as green energy and an ageing population.

Andrew Hodgson, Chair of the North East Local Enterprise Partnership, said: “2014 saw the publication of the North East LEP’s original Strategic Economic Plan, which set out in clear terms our approach to growing the regional economy and creating 100,000 more and better jobs by 2024.

“Fast forward to 2019 and our ambition remains the same, but what has changed is the political and economic landscape we find ourselves in. We’re on the brink of leaving the European Union and a new Mayoral North of Tyne Combined Authority has been formed.

“It’s for those reasons and more we’ve chosen to launch a refreshed Strategic Economic Plan, one that reflects the significant changes we’re experiencing as a country, and a region.”

The North East Strategic Economic Plan identifies four areas of strategic importance that will improve the region’s economic competitiveness. They are the digital, advanced manufacturing, health and life sciences and energy sectors.

Five programmes of activity, delivered by the North East LEP and its partners, support these areas of industry to grow, helping boost the economy and create more jobs for the people that live and work in the region.

They include helping North East businesses to grow and scale, and to compete on a global level; embracing Industry 4.0 and integrating technology and innovation into everything we do; improving skills and careers education across the North East; forging better and more sustainable transport links across the region and Northern Powerhouse; and investing in major capital infrastructure projects.

Andrew continued: “Whilst the current economic and political climate may pose challenges for our region, it also provides a number of opportunities. The refreshed Strategic Economic Plan we’re launching today outlines how, as a region, we can maximise those opportunities to strengthen and grow our economy.

“A good example is the UK’s commitment to tackling climate change and promoting clean growth. Here in the North East we are the leading location in England for the wind energy sector and our world-leading businesses and strong local supply chain puts us at the very heart of the clean energy revolution.

“We’re also global players in the health and life sciences sector, with our infrastructure, expertise and research into ageing one of our major strengths. This year alone we’ve seen the arrival of The Biosphere and National Innovation Centre for Ageing at Newcastle Helix, and NETPark in County Durham continues to thrive, helping new and emerging health and life sciences business go to market.”

Since the launch of the Strategic Economic Plan in 2014, 64,600 new jobs have been created with 77% of those classed as better jobs, in managerial, professional and technical roles. The region has also seen improvements in its employment rate, economic activity rate and productivity.

Read a copy of the updated Strategic Economic Plan.

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Education Secretary Damian Hinds challenges employers and universities to seek out all the talent in the North East.

As the Education Secretary today, (8 October 2018), launches a £24 million programme to increase opportunity for communities in the North East of England, Andrew Hodgson, Chair, North East Local Enterprise Partnership (LEP),  said:

‘The North East LEP is committed to reducing the gap between our best and lowest performing secondary schools and to improving social mobility for our young people.

“While we have the second highest proportion of outstanding schools, we also have the second highest number of schools rated less than good after Yorkshire and the Humber. It’s this disparity that we are tackling by supporting teachers, governors, schools and leaders. Ensuring the next generation has a clear pathway to achieving their full potential is a fundamental part of our Strategic Economic Plan.

“I am delighted with today’s investment announcement and recognition by the government of our ambition to drive up student attainment levels.  This funding will allow us to accelerate and build on our existing activity in this area and make a real difference to the lives of each and every young person in the North East.”

Read the full details of the funding announcement.

To learn more about Education Challenge, the North East LEP’s goal to reduce the gap between our best and lowest performing schools and to reach a target of all schools achieving a ‘good’ or ‘outstanding’ OFSTED rating, email: [email protected]

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