North East LEP reaction to ONS regional labour market statistics

The North East Local Enterprise Partnership’s Strategy and Policy Director, Richard Baker, has commented on today’s regional labour market statistics, released by the Office for National Statistics (ONS). The data updates on key indicators within the Strategic Economic Plan. Today’s release includes quarterly data for the North East region (for the period March to May 2022). The region includes the North East LEP area and Tees Valley. 

Richard Baker, Strategy and Policy Director at the North East Local Enterprise Partnership, said: “The data released today shows that recent employment trends in the North East region have continued to improve, with an additional 11,600 people in employment compared to the previous quarter and a larger increase in the employment rate than nationally. 

“The statistics also show a decrease in the region’s economic inactivity rate during the last quarter that is larger than nationally, and a continuing high level of labour market demand. However, there remains a challenge to ensure the North East labour market is working for all age groups with younger and older workers not securing employment at the same rate as other groups.

“PAYE data shows that the region’s median employee pay is increasing at a similar rate to nationally (up by 5.3% in the year to May 2022), which is faster than the pre-COVID trend, but tracking below inflation.

“Whilst it’s encouraging to see positive changes continue into this quarter, our economy continues to face challenges, particularly around the tightness of the labour market for employers and cost of living for residents. We can expect continuing volatility over the coming months and there will continue to be a need for support for business in navigating these headwinds and for families and communities facing increasing prices.”

North East LEP reaction to ONS regional labour market statistics

The North East Local Enterprise Partnership’s chief executive, Helen Golightly OBE, has commented on today’s regional labour market statistics, released by the Office for National Statistics (ONS). Today’s release includes quarterly data for the North East region (for the period February to April 2022). The region includes the North East LEP area and Tees Valley.

Helen Golightly OBE, chief executive of the North East Local Enterprise Partnership, said: “The data released today paints a slightly more positive picture than the last month with an additional 10,500 people in employment. We have seen improvement in the employment rate across the country and it’s encouraging to see the North East moving at a slightly quicker rate than the national average in this period.

“Older and younger men and women of all ages were the groups who re-entered the labour market during this quarter.

“We should however approach this month’s data with caution as the labour market remains volatile as the economy faces significant challenges with large increases in inflation and the cost of living continuing to rise. It is likely that these factors will have an impact on the labour market in months to come and we must continue to monitor these changes closely and respond accordingly.”

North East LEP reaction to Spring Statement 2022

“Against a very challenging backdrop of rising costs for people and businesses, and declining growth rates and living standards, Chancellor Rishi Sunak’s announcements will help relieve some of the pressure in areas like fuel prices and employee costs, and local authorities will have more money to help vulnerable people. He also announced spending to support small businesses with employment costs and business rates, which we welcome.

“However some of the big investments which could have accelerated growth in the North East will await the Budget. We also expect to see more detail on regional policy issues, including detail on the UK Shared Prosperity Fund, later in the year.

“We look forward to learning more about the planned consultation on areas including skills support, the apprenticeships levy, innovation performance and capital allowances for investment. These are important areas for focus if we are to see sustained long term growth.”

Richard Baker, Strategy and Policy Director at the North East Local Enterprise Partnership

Supporting North East businesses through the coronavirus pandemic and EU Exit

By Helen Lee, Programme Manager – Growth Hub, at the North East Local Enterprise Partnership


Managing and running a business over the past two years has been a truly unique experience.

The combination of the coronavirus pandemic and the UK’s exit from the European Union has resulted in one of the biggest global economic shocks in our lifetime, leaving many businesses in need of support, advice and guidance to help the weather the storm.

As one of the leading business support and finance and funding platforms in the region, the North East Growth Hub has had a vital role in the North East’s economic response. To better understand the North East Growth Hub’s role in supporting businesses during COVID-19 and the UK’s departure from the EU, the North East Local Enterprise Partnership commissioned Steer Economic Development (Steer-ED) to produce a detailed case study as part of its evaluation of the North East Strategic Economic Plan. The North East Growth Hub is a key strand of activity within the Business Growth programme of delivery, which helps deliver the ambitions of the Plan. The case study is based on survey feedback from the region’s business community, and business support, finance and funding providers.

It shows the coronavirus pandemic caused a huge spike in demand for business support services as employers struggled to navigate the flurry of announcements and guidance released by government. And it was largely micro businesses – those with less than ten employees – that came to the North East Growth Hub for support and advice.

Despite the rise in demand for our services, response rates and satisfaction rates have consistently remained high, even at a time when many businesses reaching out to us were ineligible for the support they had hoped for. 73% of respondents said they were satisfied or very satisfied with the North East Growth Hub, and a third of businesses that contacted us during the pandemic received a response on the same day.

Interestingly, 69% of businesses that responded to the survey were first time users of North East Growth Hub, which demonstrates the widespread impact of COVID-19 on the region’s business community. Whilst the effects of the pandemic were the main driver for many of these businesses reaching out to us, it has allowed us to signpost other business support and finance and funding services available to them.

The volume of information aimed at businesses during the pandemic has been overwhelming for many, so it’s positive to see 77% of businesses rated the quality of content on northeastgrowthhub.co.uk as good or very good. It was essential for us to make sure content from government and other partners was accessible to all businesses, and delivered in a timely and efficient manner.

I’m also very glad to see the hard work of our Growth Hub Connectors recognised in the case study. As well as providing business support and finance and funding advice, Connectors were also there to listen. At the height of the pandemic there was a lot of uncertainty, which left many business owners feeling vulnerable and anxious about the future. The Growth Hub Connect team spent time listening and talking to businesses so they could better understand their individual circumstances.

As a result, 83% of respondents said they would likely re-engage with the North East Growth Hub and refer people in their network to the service. I think that’s testament to the team’s ability to positively impact and support North East businesses at a crucial time. There were some very emotive conversations with business owners, and I’d like to personally thank the Growth Hub Connectors for the extra time they spent with clients to help understand and resolve the very difficult challenges businesses were facing.

As well as highlighting feedback from businesses that engaged with the North East Growth Hub, the case study also reflects on comments from our Provider Network, which is the collective of business support and finance and funding providers we signpost North East businesses to via the Growth Hub. All respondents said they were happy with their relationship with the North East Growth Hub. This is wonderful to see as we consider our network of business support, finance and funding providers as an extension of our team. We very much felt like we were all in this together.

To have a trusted network of partners during the pandemic was very important as that open dialogue ensured we could deliver the right support to businesses. It also helped us better understand the offer from providers.

As we begin to emerge from the coronavirus pandemic and demand for support in this area reduces, we recognise that businesses will use the North East Growth Hub in different ways. The conclusions and outcomes in the report discuss this change in behavior in more detail, and how the North East Growth Hub can continue to provide the support businesses need.

If you’d like to know more about the North East Growth Hub, please visit northeastgrowthhub.co.uk or book an appointment to speak to a Growth Hub Connector. Our team has expanded during the coronavirus pandemic and we’re here to help businesses right across the North East LEP area.

There’s a huge amount of support available in our region for people looking to start or grow a business, so please get in touch to find out how we can help you on your business journey.

North East LEP Growth Hub: Responding to COVID-19 and EU Transition Case Study is available to read on the North East LEP’s Evidence Hub.

Energy Summit to explore opportunities for region’s supply chain to deliver Net Zero solutions

Businesses in the North East energy sector are being invited to a free event that will discuss areas where the region can capitalise on innovative opportunities arising from COP26. The North East Energy Catalyst Summit will also showcase the best of our regional innovation and demonstration assets, illustrating the role of our laboratories, living labs and technical hubs in seeking solutions to Net Zero challenges.

The North East Energy Catalyst Summit, organised by the North East Local Enterprise Partnership (LEP), will bring the sector together to discuss opportunities and accelerate the drive towards decarbonisation.  

David Lynch, Energy Innovation Manager at the North East LEP, explains: “The North East has the skills, infrastructure and organisations to position it as a leader in the UK’s drive to net zero. We want to invite all those involved in our regional energy sector to join us at the North East Energy Catalyst Summit to explore how industry, the public sector, academia and governmental bodies can work together to make sure that we maximise on opportunities and drive economic growth in our region.” 

The North East Energy Catalyst already brings together 14 of the region’s energy innovation, demonstration and delivery organisations and now it is opening up membership to SMEs operating in the energy sector.  

David Lynch said: “Industry, universities and government bodies are working together through the North East Energy Catalyst and we’d now like North East SMEs to join the network, creating a unified partnership which is ready to tackle some of the major energy challenges that the world is facing.”  

As well as opening up membership of the Catalyst and exploring opportunities for growth in the energy sector, delegates at the North East Energy Catalyst Summit will hear from investors in the region, including Tom Nightingale from Equinor, on why they chose the North East as a base for their organisation.  

The North East Energy Catalyst Summit will take place online on Tuesday 8 March from 9.30am to 12pm. Tickets are free and can be booked at https://www.eventbrite.co.uk/e/north-east-energy-catalyst-summit-tickets-262524125727  

You can learn more about the North East Energy Catalyst at www.northeastenergycatalyst.co.uk

Feedback from Black, Asian and Minority Ethnic business owners to shape North East business support

Feedback from Black, Asian and Minority Ethnic business owners in the North East is being used to help shape business support in the region.

The North East Local Enterprise Partnership (LEP) held a consultation with Black, Asian and Minority Ethnic business owners, asking them to share their views on any barriers they face when trying to access business advice.

Local MP Chi Onwurah attended the event and set out the region’s ambitions for inclusive business growth by providing more support for ethnic minority business owners.

The event was led by Diana Chrouch, special advisor to the All Party Parliamentary Group for Black Asian and Minority Ethnic Business Owners and the Chair of Ethnic Minority Business Policy for the Federation of Small Business

Colin Bell, Business and Sector Growth Director at the North East LEP, said: “We’d like to thank everyone who attended the event and gave valuable feedback about support for SMEs in our region.”

Chi Onwurah, MP for Newcastle upon Tyne Central, said: “The North East is a great place to start and grow a business and if we can better support the skills and ambitions of our Black, Asian and Minority Ethnic business owners then we can better build a sustainable, prosperous economy in the region.”

The findings from the series of consultation events will help to shape business support provided through the North East Growth Hub, which helps businesses in the North East LEP area to grow.

Colin Bell added: “One-to-one support is available for all businesses in our region via the North East Growth Hub and we want to see as many people as possible taking advantage of this free advice. Our team of Connectors – business experts who can give you advice on funding and growing your business – are available to chat and answer queries.”

Business advice can be accessed at www.NorthEastGrowthHub.co.uk.

Investing in Innovation for a greener UK

Alan Welby, Innovation Director discusses today’s announcement of the Chancellor’s plans for UK to be the world’s first net zero aligned financial centre. 


Put simply, net zero refers to the balance between the amount of greenhouse gas produced and the amount removed from the atmosphere. We reach net zero when the amount we add is no more than the amount taken away.  

Net zero means a radical change across the entire economy, replacing fossil fuels and other sources of emissions wherever possible. 

This is why the announcement at COP26 that the global finance system will be rewired for net zero and that the UK will become the first net zero finance centre in the world is so important. This step is of huge significance to the North East LEP area.  

The North East holds considerable potential for investors interested in market growth that assists our net zero ambitions, particularly in ‘green’ industries but also in the technologies that will enable all sectors to reduce their carbon debt. 

Our businesses already contribute to net zero markets, from renewable energy generation and energy storage to electric vehicles and battery manufacture but we also have capabilities in emergent and nascent markets that will also be looking to their net zero commitments. We have significant regional specialisms and capabilities, and operate internationally in autonomous vehicles, robotics, space and satellites whilst our presence, along with our capabilities, in other markets including biopharmaceuticals, fintech and cybersecurity is growing. 

We need to ensure that businesses in these markets are reaching their full potential to achieve net zero carbon emissions and commitment to investment in these markets is critical. Through a gearing up of finance for sustainable growth, we can give a big boost to business innovation and investment that powers this transition. 

One example of what we are doing to accelerate investment in innovation and boost net zero innovation activity is the 12-month Finance for Sustainable Growth or ‘F4SG’ pilot with the City of London Corporation that is showcasing the North East’s initiatives in green innovation and associated enterprises to a wider investor base. Its aim, through intensifying the region’s connections to London and its global network, is to boost the flow of green investment to the region and to reinforce the North East’s ecosystem for nurturing sustainable businesses. The initiative is a collaboration of the Corporation with the North East LEP, Northern Accelerator and North Star Ventures. 

We’re excited to see where this pilot takes us and to show London-based and international investors some of the ground-breaking innovation happening in our region.   

Find out more about the innovation support and finance available in our region via the Innovation Toolkit on the North East Growth Hub.   

A once in a generation opportunity to modernise business support

Colin Bell, Business and Sector Growth Director at the North East Local Enterprise Partnership, explains why evolution is key to simplifying the business support landscape to be meaningful for businesses  

It won’t surprise anyone when I say that the business support landscape is too confusing and overly transactional. There are many reasons for this but perhaps the biggest contributor is the way funding is administered and governed.

If we truly want the UK to be the best place in the world to start and grow a business, then we need to grasp the once in a generation opportunity represented by the current LEP reform. This will allow us to break with the status quo while building on what works, creating regional ecosystems that deliver economic and business transformation while strengthening our global competitiveness.

However, there is a real and present danger – if we don’t act now then we risk merely evolving what’s gone before, and even worse, creating a post code lottery of locally focused small scale schemes that will result in limited impact and increased fragmentation; and inefficiencies that will exacerbate rather than address the weaknesses of the current funding and fragmented landscape.

Addressing the frailties of the system is relatively simple. We need to develop a way of working that effectively connects the essential pillars of regional economic development, which are Governance, Strategy, Funding and Delivery infrastructure.

Where these don’t work hand in hand, it leads to many of the existing issues that we are experiencing, such as inefficiency, confusion, duplication and unhealthy competition between stakeholders.

Modernising the landscape requires:

  • Creating systems that connect the essential pillars (Governance, Strategy, Funding, Delivery infrastructure) without dictating a one size fits all approach.
  • Developing regional strategy and frameworks that are built around businesses operational and competitive horizons.   
  • The creation of a long term regional economic development ‘system’, backed by long term strategy and long-term funding.
  • A system that is focused on delivering impact and transformation rather than box ticking and transactional approaches.
  • The modernisation of the business support landscape by a) rethinking how we segment the business base to identify those with real underlying potential, and b) structuring support that directly tackles business pains and helps business to deliver the gains they’re striving for.
  • Building on the existing and proven ability of LEPs and Growth Hubs to align collective energy and resources towards clear and common goals and strategy.

The evolution of LEPs and Growth Hubs should be welcomed as a much-needed chance to modernise business support. 

I know I’m joined by many in the belief that this is an opportunity to develop a landscape that enables genuine business and economic transformation. Through meaningful change, we can deliver powerful and integrated customer journeys and focused resource and energy on the businesses, programmes, and initiatives that make a real difference to the business community.

Get this right and it could be a powerful and effective way to support the government’s agenda to level up our regional economies.

Colin Bell is Business and Sector Growth Director at the North East Local Enterprise Partnership.

New reports on North East economy reveal impact of COVID-19 and EU Exit

The North East Local Enterprise Partnership has published two new reports, one, an annual state of the region report and the other exploring the impact of COVID-19 and EU Exit on the North East economy.

The LEP’s annual Our Economy report has been published in two parts in 2021. The first report tracks the long term performance of the North East LEP economy across a range of key economic indicators and provides an overview of how it is changing over time.

It also includes an update on progress towards the North East LEP’s aim of bringing 100,000 more and better jobs to the region by 2024, and analysis of the impact of emerging policy priorities, like levelling up and decarbonisation, on the North East.

The second report provides a comprehensive and in-depth look at the national and regional data, research, insights and commentary that shows how COVID-19 and EU exit has impacted the regional economy. Drawing on a range of additional and innovative sources of data, ‘Our Economy: Insights into the impact of COVID-19 and EU transition on the North East Economy’ gathers intelligence on the impacts of the pandemic and EU exit on the North East economy from March 2020 to the current day.

Lucy Winskell OBE, Chair of the North East LEP, said: “This year, perhaps more than any other, developing our shared understanding of change in the regional economy is crucial.

“The work we have done to track, analyse and interpret data and evidence about the performance of our regional economy is central to our role at the North East LEP and a core part of the support we offer our partners.

“It is integral to our economic leadership, our influencing work with government, and underpins our investment decisions and stewardship of public funds, ensuring that regional programmes of delivery are targeted at addressing the key opportunities and challenges we face.”

The reports state that whilst the short-term impact of COVID-19 on the North East was highly disruptive and challenging, the region has continued to sustain increased levels of employment compared with its baseline in 2014, with continued growth of the proportion of better jobs – managers, directors and senior officials; professional occupations; and associate professional and technical occupations – in the region.

They also show the impact of COVID-19 on business and the labour market has been significant. Some sectors, including retail, culture and hospitality, have seen severe changes. Local, regional and national intervention has had an impact in protecting businesses and jobs, but the impact now many of these support measures have ended is unclear.

Inequalities within the region have been exacerbated by the pandemic too, with employers in many industries struggling with skills shortages.

The reports also include data showing that the region’s engagement with the global economy is changing, with the impact of EU Exit creating barriers to trade and the future trading environment still evolving.

Our Economy 2021 also looks at the performance of our programmes and sectors – which have been identified as areas of opportunity for the region, including health and life sciences, digital and energy.

Richard Baker, Strategy and Policy Director at the North East LEP explained: “The economic shock has accelerated a number of opportunities for the North East, with growth and new jobs in some of the key areas of strength and opportunity we have been focused on – in energy, life sciences and digital industries for example.

“Many firms across the economy have changed their operational models, with rapid deployment of digital technology, changing approaches to delivery of goods and services locally and growth in online exporting. There are genuine opportunities for the region to drive forward greener businesses and to drive productivity.”

The evidence provided by Our Economy is used to inform the work of the North East LEP and partners across the region in delivering the North East Strategic Economic Plan – the roadmap for increasing economic growth in the North East.

Our Economy 2021 is available to view on evidencehub.northeastlep.co.uk.

Our Economy: Insights into the impact of COVID-19 and EU transition on the North East Economy is also available to view on evidencehub.northeastlep.co.uk.

The North East Strategic Economic Plan can be read at northeastlep.co.uk.