Blyth to share in £160m North East Investment Zone scheme with tax breaks for green or advanced manufacturing firms

The scheme, announced by the Chancellor during the Autumn Statement in November, will see tax breaks and infrastructure investment for four sites in the region.

Blyth Energy Central, around 200 hectares of development sites in and around the Port of Blyth, will become one of the zone’s tax sites, where new and expanding businesses in green or advanced manufacturing industries will be incentivised with tax breaks.

£160m will be spent across the four chosen areas over the next ten years, with an estimated 4,000 new jobs created in the North East as a result.

It is hoped this will unlock hundreds of millions of pounds of investment from the private sector, including up the supply chain, which will benefit the entire region.

Subject to final government sign-off in March, the programme will begin this spring.

Councillor Glen Sanderson, leader of Northumberland County Council, said: “This is an exciting announcement and is set to cement Blyth’s reputation as a leader for green energy and investment.

“The energy cluster in and around the Blyth estuary currently supports around 2,700 jobs and there are significant further employment opportunities associated with offshore renewables, electrification, advanced technology, and wider infrastructure.

“This is another example of how we can work together as a region for the benefit of both Northumberland and the wider North East.”

The International Advanced Manufacturing Strategic Site in Sunderland and South Tyneside will also see tax intervention, while the River Tyne Corridor and North East Technology Park in County Durham will benefit from Investment Zone capital investments.

The zone will be overseen by the North of Tyne Combined Authority until the new North East Combined Authority, created by a £4.2bn devolution deal, is officially established after elections in May.

Graeme Miller, the new authority’s interim portfolio holder for finance and leader of Sunderland City Council, said: “As a group of council leaders we are leading the establishment of the new combined authority and this investment zone would not have been possible without this joint effort.

“The investment, and private sector investment it will leverage will have a real impact for our residents, now and for many generations to come.

“We are already recognised as world leading in clean energy and green manufacturing and this just further cements our position as the best place to do business in these sectors.”

Jamie Driscoll, North of Tyne Mayor and independent candidate for the new mayoralty, said: “Government first planned these in August 2022, when they originally offered us £80 million. I met with ministers to help shape our deal, because we need up-front investment and secure well-paid jobs, not zero-hours contracts.

“We are now getting £160 million over ten years to boost local skills and infrastructure. This will mean more well-paid jobs in green tech and advanced manufacturing, from offshore wind to electric vehicle production.

“Investment Zones must complement the strategic vision I have for the region. I want to make the North East a great place for innovative, progressive businesses to thrive in.”