New green and digital investment hopes for region

March 8, 2024

1 minute read

The government is hoping to see £3bn of investment and the creation of 4,000 new green jobs in new investment zones in the North East within a decade, it has emerged following this week’s Budget.

Details of new zones in the North East region as well as in Greater Manchester, Liverpool City Reion, South Yorkshire and the West Midlands have been announced by the Treasury and Department for Levelling Up, Housing and Communities (DLUHC).

The North East, according to the government, will support new investment and innovation in electric vehicle manufacturing, battery production, offshore wind and low-carbon materials, building on the region’s longstanding strengths in automotive and advanced manufacturing and increasing prominence as a hub for clean energy.

“A combination of tax incentives and funding will be used to attract investment, stimulate innovation, and support businesses to grow in these sectors”, according to the Treasury and DLUHC.

“Tax incentives will be available at Blyth Energy Central in Northumberland and the International Advanced Manufacturing Strategic Site in Sunderland and South Tyneside, while a £20mn co-investment fund will unlock jobs growth along the Tyne Powered Economic Corridor and expand capacity at NETPark in County Durham.

“This will be complemented by £15mn for a skills package co-delivered with the private sector, as well as £15mn of infrastructure funding and £5mn to stimulate innovation and productivity growth across these sectors.

“The programme aims to secure major inward investors, encourage co-location of wider supply chains and support the growth of existing businesses. Together, local partners expect these proposals to leverage at least £3bn investment and create more than 4,000 jobs over the next 10 years.”

An investment zone in Tees Valley will focus on digital and creative sectors, backed by an initial £15mn private investment to support the growth of the digi-tech cluster in Middlesbrough. The Budget also confirmed that the English Freeport tax reliefs, [including for Teesside Freeport] are being extended to September 2031.

*This report is based on a government press release.