Investing for the future of the North East

A devolution deal means that in May, subject to Parliamentary approval, a new combined authority will be formed in the North East, with a new Mayor elected.

Interim portfolio holder for finance and investment Is Cllr Graeme Miller, Leader of Sunderland City Council

Cllr Miller explains how preparations are being made and his aspirations for the new authority.

The North East is poised to capitalise on our devolution deal.

More decisions over what to invest in and where will be made here, by the people who understand our region.

We already punch above our weight with an economy worth over £40bn across our diverse geography; with three cities, many vibrant towns, and extensive rural and coastal communities.

Amidst this background, we stand to become the home of the geographically largest mayoral combined authority in England with a devolution deal that puts decision making here, instead of in Westminster.

With that deal comes a £1.4billion investment fund from government. With the potential for up to £5billion more in private sector investment.

This is new money and not simply to replace existing investment.

For too long, we have seen government funding delivered ad-hoc and without appreciation of what is needed for our area. For years councils have had to compete and bid for funding from Whitehall, where decisions are made not with an understanding of local priorities but often on a one-size-fits-all basis.

The purpose now is for local decisions to be made based tailored to our needs. Our unique identity means we won’t be just copying other regions and doing what others do.

Using evidence and working with businesses, we can invest to benefit the whole region and make our economy more prosperous, sustainable and inclusive. In turn this will give the private sector confidence that this is the best place to do business and give our people the opportunities right here, without the need to move to London or elsewhere for good work.

My fellow political leaders and I are already having serious conversations with communities about developing a long-term strategy that creates a framework for investment.

We’re talking to local businesses, universities, colleges, health leaders and others. This is a deal for the whole region and we know that working together there are endless possibilities.

Already, we are showing our regional collaboration with the investment zone which will see £160million from Government and unlock hundreds of millions of pounds of investment from the private sector.

The zone will be targeted at Advanced Manufacturing and Green Industries – reflecting our region’s long-standing sectoral strengths and increasing prominence as an international hub for clean energy.

Aligned to the Arc of Innovation – running from Northumberland down to Sunderland and Durham, with opportunities along the Tyne Corridor – it will bring benefits to businesses and local communities across the whole region. 

These sites will benefit from a mix of tax incentives and upfront infrastructure investment, while the Investment Zone will support region-wide investment in skills and innovation.

We have many other incredible examples of how inward investment is driving our region. In my council area of Sunderland we have Nissan and the recent announcement to invest up to £3billion in electric vehicle production at the Washington plant. 

The new Dogger Bank Wind Farm will be the world’s largest offshore wind farm, with 400 skilled workers to be employed at the operations and maintenance base in South Tyneside.

And even before the combined authority is formed we are making early progress on our priorities so we can hit the ground running this year. We are working across the whole region to transform former industrial sites into a range of housing, with a devolved brownfield housing fund.

We’re also getting ready to deliver on our devolved adult education budget to give local people the skills and training they need to find jobs here in this region.

All of this investment is more than just money – it is about people. It is about creating good job opportunities and about giving people the skills they need to get higher paying jobs.

While the region has its strengths it has its challenges too. We have lower levels of skills and higher levels of economic activity which in part lead to lower healthy life expectancy.

The social and environmental impact of the deal are just as important as the economic. We will not lose sight of this.

There has rarely been a more exciting time for the North East.