Metro improvements, electric cars boost and Sunderland film studios - the full list of 'trailblazer' benefits confirmed by the Budget

A “shift in power” to the North East will allow the development of a huge film and TV studio in Sunderland, investment in public transport upgrades, and new housing.

Jeremy Hunt confirmed in his Budget on Wednesday that the region will be given a new “trailblazer” devolution deal that delivers more decision-making powers to the incoming North East mayor and, the Chancellor said, potentially be worth more than £100million.

It is expected to result in an initial £25million investment into the redevelopment of the Sunderland Riverside, enabling the building of the Crown Works Studios – a massive project that it is hoped will create thousands of jobs.

A further £10million is set to be put towards a new “Health Innovation Zone” in Newcastle.

The commitment to the “trailblazer” comes on top of powers and funding within the multi-billion pound North East devolution deal which has already been agreed, ahead of an election in May for a new mayor who will represent around two million people across Northumberland, Durham, and Tyne and Wear.

Its enhanced powers, versions of which have already been given to mayors in Greater Manchester and the West Midlands, also include a single funding pot for housing and regeneration.

That is described in the deal as “a stepping stone” towards the North East Mayoral Combined Authority (NEMCA) being awarded a full single department-style funding settlement, that would offer the region much greater freedom over how it spends the money devolved from the Government.

The “deeper” devolution deal also confirms £58.4million of funding for maintenance and renewal works on the Tyne and Wear Metro between 2025 and 2027, though that is money that has been brought forward from the region’s previously-announced City Region Sustainable Transport Settlement from 2027 to 2032.

The agreement was described by local councils chiefs on Wednesday as a “shift in power and influence from central government to the North East on key drivers of local growth”.

The leaders of Newcastle, Gateshead, Sunderland, South Tyneside, North Tyneside, Durham, and Northumberland councils added: “From enabling investment for Crown Works Studios to securing essential transport funding to a taskforce to tackle rural and coastal issues, this is a deal we have custom made for the North East. Today’s announcement will help us to do more and is rightful recognition that we are better placed to identify the priorities for our region.”

The trailblazer deal is expected to result in:

:: A £25million investment to support the development of the Riverside Sunderland site along with creation of a ‘Growth Zone’ to attract investment, with Sunderland Council and NEMCA ultimately expected to invest up to £120million towards the creation of Fulwell 73’s Crown Works film studios “using the tools provided by the deal”;

:: The creation of a coastal and rural taskforce to “strengthen quality of life, biodiversity and the natural environment”;

:: From 2026, NEMCA will be able to set the overall strategic direction of theregion’s Affordable Housing Programme, in partnership with Homes England;

:: £58million of funding brought forward to cover the maintenance and renewal of the Tyne and Wear Metro system for the next two years;

:: A single funding pot for housing and regeneration, as a precursor to a future departmental-style funding settlement;

:: A new rail board being set up involving NEMCA, the Government, and the rail industry to develop plans for improvements to train services;

:: £10million to “accelerate progress on a Health Innovation Zone” in Newcastle, including developments at the Forth Yards and the Newcastle University’s Health Innovation Neighbourhood on the city’s former general hospital site;

:: A commitment from the Government to help expand the use of the Metro’s Pop pay-as-you-go travel cards on rail services “as soon as viable”, subject to the outcome of trials in Greater Manchester and the West Midlands.

Sharon Hodgson, the Labour MP for Washington and Sunderland West, said that the “long overdue investment” in the city’s riverside development meant the Government had “finally put their money where their mouth is for the people of the North East”.

Metro operator Nexus said the release of the £58million of maintenance funding would allow “further renewal of track, overhead lines, stations, bridges, tunnels, IT systems and other key Metro assets across the network”.

John Fenwick, Nexus’ director of finance, added: “There was also support for plans to develop the expansion of the Pop card onto local rail services through the North East devolution deal, which is good news for rail users.”

The Treasury also confirmed further details on Wednesday of a new “investment zone” in the North East, which it said would support new investment and innovation in electric vehicle manufacturing, battery production, offshore wind and low-carbon materials.

That will see businesses offered tax incentives at Blyth Energy Central in Northumberland and the International Advanced Manufacturing Strategic Site in Sunderland and South Tyneside, plus a £20million investment fund set up to help create jobs on the banks of the Tyne and at the NETPark in Durham.

It is hoped the zone will leverage at least £3billion of investment and create more than 4,000 jobs over the next 10 years.