UK nations and regions
North East England
North East England is one of the UK's fastest growing economies, offering a highly-skilled workforce, exceptional connectivity, cost-competitive operations and strong expertise in automotive, energy and advanced manufacturing sectors.
The region offers a highly skilled workforce, competitive wages and cost-effective property, making it one of the UK's most economical locations. Providing excellent connectivity to UK and international markets through major ports and transport links, it enjoys world-class assets including NETPark, host to three national Catapult centres. The £160 million North East Investment Zone provides substantial tax benefits and grant funding. Recent success includes founding the AI Growth Zone with the UK Government, attracting over £10 billion investment from leading tech firms.
Key facts for North East England
58,000 specialist workers employed in advanced manufacturing sector
15,000 financial, professional and business services companies
5 universities
£160 million government investment in the North East Investment zone (NEIZ)
2 science parks
68,000 students studying Science, Technology, Engineering and Mathematics (STEM) subjects
An industrial strategy for the whole of the UK
The modern Industrial Strategy is a new economic approach – a whole-of-government effort to back the UK’s strengths, with ambitious plans for 8 high-growth sectors (‘IS-8’) and the frontier industries at their leading edge, from quantum to pharmaceuticals. It is a 10-year plan, built on stability and openness, to make the UK the best country to invest in.
Building on the North East's strengths
The North East already has a huge amount to celebrate and the Industrial Strategy’s sector plans promote its wide-ranging strengths to investors.
Advanced manufacturing
The North East is anchored by the world leading automotive manufacturing hub at Nissan in Sunderland, and the North East Combined Authority Investment Zone. It’s home to a growing space sector, with key assets including the materials and satellite clusters around NETPark in County Durham, and Northumbria University's North East Space Skills Technology Centre, which is currently under construction.
Clean energy industries
Investments, including £900 million from SeAH and £120 million from Smulders, have created more than 2,500 jobs. Additionally, JDR Cable Systems has invested £130 million into an offshore cable manufacturing in Cambois, Northumberland. There is a ECC CCUS (East Coast Cluster Carbon Capture, Usage and Storage) project to create around 2000 jobs. Schneider Electric has invested £42 million to expand critical switchgear production in Scarborough.
Creative industries
The North East is home to a centre for writing, to nurture new talent and boost the North East as a publishing hub. It has a growing music scene, including Generator, Sunderland Music City and Newcastle's new Quayside studios with Warner Music. There is a growing game development cluster in Tees Valley, home to a £160 million creative and digital investment zone.
Life sciences
The North East is a leader in end-to-end biopharma manufacturing, with strengths in clinical trials, diagnostics and advanced therapies. It hosts the Centre for Process Innovation, with expertise in RNA, National Horizons Centre's biosciences facilities and the National Innovation Centre for Ageing. The North East has 9,300 jobs and a £2.1 billion industry turnover, and boasts access to scientific talent and a high density of life sciences students across 5 universities.
Defence
The region hosts significant equities in the areas of space, cyber, AI and semiconductors with a focus on engineering, fabrication, digital technologies and, increasingly, data and cybersecurity. A fast-growing space cluster is soon to be supported by the North East Space Skills and Technology Centre at Northumbria University, whilst the material electronics sector is bolstered by Octric Semiconductors and the Compound Semiconductor Applications Catapult.
Foundational industries relevant to IS-8 supply chains
In Tees Valley, steel is vital for the local area and chemicals production is a major employer. There are critical minerals clusters in Durham. There are electricity networks in Blyth and the Port of Tyne and construction is spread across the region.
Driving regional growth in the North East
The Industrial Strategy introduces ambitious policies to drive growth and investment across every nation and region of the UK. This is a 10-year strategy which will be a living document. We want to continue to work with local government, Mayoral Strategic Authorities and devolved governments to ensure they can drive growth across the UK.
More policies will be delivered over time, but below are some of the specific interventions in the North East that form part of our strategy.
Locally targeted investments in the IS-8 growth-driving sectors
- Government is exploring the opportunity for a pilot initiative in partnership with the North East Combined Authority (NECA) to drive development of a strong and resilient electric vehicle supply chain in the UK
- The NECA will receive devolved funding from the £150 million Creative Places Growth Fund to support creative businesses and freelancers in their region
- £64 million pilot scheme in the North of England to improve professional and business services (the 'Made Smarter' pilot)
Devolved funding for the local leaders who know their places best to help deliver their Local Growth Plans
- At least £30 million earmarked for the NECA through the Local Innovation Partnerships Fund. This will empower local leaders to decide how to target research investment in the region and unleash its full innovation potential
- Recommitting £160 million investment to support tax relief and bolster Investment Zones for advanced manufacturing and clean energy industries in the NECA, and Creative Industries in Tees Valley CA
- Enhanced support for Teesside Freeport, specialised in clean energy industries, with streamlined planning processes, better-targeted investment promotion, support for accessing concessionary finance, and coordinated support on skills
Tools to help city regions and clusters attract private investment
- £100 million expansion of the British Business Bank's Nations and Regions Investment Funds. A new Cluster Champion for the NECA will support this by strengthening local financial networks and helping to connect firms with investors
Connecting city regions and clusters
- £1,790 million for the NECA and £978 million for Tees Valley CA through the Transport for City Regions funding, to allow mayors to improve public transport connectivity in their city region. In the NECA, this will support the Metro extension linking Newcastle and Sunderland via Washington, serving one of the largest advanced manufacturing zones in the UK. In Tees Valley, this will include £60 million for the Platform 3 extension at Middlesbrough station, unblocking the local network