North East Investment Zone

Since the announcement an extensive process of co-design has been undertaken with Government, alongside consultation and stakeholder engagement, including with businesses, universities, further education colleges and others. The key features of the proposed North East Investment Zone have now been agreed with Government and are described below. 

As part of the North East IZ the region will introduce a number of ‘IZ Tax Sites’ (where businesses located on the site can access tax benefits) or ‘IZ Growth Sites’ (where businesses located on the site can benefit from access to additional flexible spending). The following locations are included within the North East IZ and will benefit from these measures:

• Blyth Energy Central in Northumberland (Tax and BRR site) 
• River Tyne Economic Corridor in Newcastle, North Tyneside, and Northumberland (Growth Site) 
• International Advanced Manufacturing Strategic Site (IAMSS) in Sunderland and South Tyneside (Tax and BRR site) 
• NETPark (North East Technology Park) in County Durham (Growth Site) 

Further details are available on the Invest North East England website.

The North East IZ will have a sectoral focus on Advanced Manufacturing and Green Industries, building on the ‘Arc of Innovation’ set out in the North East Devolution Deal. It will concentrate on industrial clusters in offshore and renewable energy, electric vehicle, and battery manufacturing, and associated low-carbon manufacturing, materials, and research. 

Flexible funding of £70m over 10 years with be available to the North East IZ (£7m allocation per year available on a 60:40 capital/revenue split). This will be invested against a list of pre-approved interventions tin relation to skills, infrastructure, and innovation. Work to develop these proposals has commenced with the first investment decisions expected to come forward for consideration over the coming months.

It is anticipated through modelling that the North East IZ has the potential to create at least 4,000 jobs and attract £3bn of private sector investment. Additional jobs created in construction and across supply chains are also expected.  

From a governance perspective, North East CA will be accountable body for the North East IZ, with all investment decisions taken by North East CA in accordance with our constitution and single assurance framework. An Investment Zone Advisory Board has been established, membership includes representation from across both the public and private sector. 

While the IZ advisory board is a government requirement, it adds significant value to the IZ programme bringing together a wider group of stakeholders and their expertise to enable delivery.