New Enterprise Zone for the North East

The recent government announcement confirming a new Enterprise Zone for the North East will drive a new era for the area's manufacturing

The Elected Mayor of North Tyneside, Linda Arkley has been lobbying the government - supported by partners on the Local Enterprise Partnership - since early this year to allow the North Bank of the Tyne to be part of a new round of Enterprise Zones to promote economic growth and private sector investment.

Over the last few years she has also established and led a new Riverside Forum - bringing together all interested parties to work on a 'one river' approach to develop and market the area to potential investors.

Numerous meetings have also been held with government ministers and departments to explore future opportunities for the area to benefit from a national need to grow the country's manufacturing capacity and prepare for the needs of new sustainable energy industries.

Their efforts were rewarded with confirmation from the government that a Low Carbon Enterprise Zone - spread over two sites covering 117 hectares - has been given the go-ahead.

The go-ahead by the government for a new Low Carbon Enterprise Zone in the North East will cover:

- The prime strategic riverside land along the North Bank of the Tyne - including the Swan Hunter site, Neptune Yard and Port of Tyne North Estate

- Ultra Low Carbon Vehicle sites adjacent to the A19 (Sunderland)

And as a further boost to the North East's economy, the zone will allow investors on the sites to be eligible for enhanced capital allowances - providing opportunities to access millions of pounds to support their move to the enterprise zone.

"This is a fantastic day for the whole of the North East - not just North Tyneside," said Mrs Arkley.

"The North Bank of the Tyne has historically been a real driver to the area's economy. This enterprise zone means it will be once again."

Mrs Arkley wrote to Vince Cable, Secretary of State for Business and Innovation and Skills in February, pressing the government to repeat the Enterprise Zone initiative that resulted in the creation of Cobalt and Quorum Business Parks and generated 15,000 jobs across the borough.

Calling on the government to take a different approach by turning the focus onto manufacturing, with the North Bank of the Tyne at its centre, she wrote: "The North Bank of the Tyne has a rich heritage of world-class manufacturing and sub-sea design and technology.

"Using this as a strong foundation, the area now has the potential to become not just the national lead, but also one of the top three locations in Europe for advance offshore manufacturing and renewables research and development.

"The wider North East provides the critical mass of technology, support services, skilled labour and supply chain links whilst the North Bank provides the major sites capable of accommodating large inward investment opportunities such as the manufacture of offshore wind turbines, supported by a range of smaller sites along both sides of the river."

The new enterprise zone will be a hub of expertise built around manufacturing, research and innovation in the field of low carbon.

Confirming the borough - and all partners across the North East - are ready to capitalise on the opportunities of having an enterprise zone, Mrs Arkley said:

"As a whole North East team - across the public and private sector - we are ready to take this forward to the benefit of all seven of the Local Enterprise Zone partner authorities.

"We have the land, we have the commitment, we have interest from business, we have a learning village in development to ensure the future workforces have the skills needed and now we have an Enterprise Zone that can make it happen."

The allocation of the sites as eligible for enhanced capital allowances means that investors within the enterprise zone will be able to claim tax relief for any asset they buy - e.g. tools, machinery, equipment and in some instances building related expenditure. Capital expenditure on research and development (including equipment used for research and development, may also qualify for allowances.
The swathe of land, from Walker in Newcastle through to the Port of Tyne in North Shields, has been the focus of a public-private partnership since the demise of shipbuilding and the closure of the Swan Hunter site.

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