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Lucy Winskell OBE, Chair of the North East LEP, responds to the announcement Nissan plans to invest up to £3bn in electric vehicle production in Sunderland

“Today’s announcement from Nissan reinforces the company’s commitment to the North East, and signals a new future for car manufacturing in our region.

“Not only will it protect thousands of existing jobs at its world leading manufacturing plant, it paves the way for more and better jobs as the company accelerates its transition to full electrification by 2030. Nissan’s commitment to manufacture future electric versions of the Qashqai, JUKE, and LEAF models follows a £1bn investment by Nissan and its partners to build a new electric vehicle hub – EV36Zero – which will create a world-first EV manufacturing ecosystem in Sunderland.

“The automotive sector in the North East, and the wider advanced manufacturing industry that supports it, is key to the future success of our region’s economy. Thanks to the adoption of new smart technology across the sector, we’re creating a workforce that is equipped with the skills needed for the jobs of the future. That’s helping to attract investment into the North East and position the region as one of the world’s leading hubs for green energy and advanced manufacturing. 

“As a pioneer in electric vehicles, Nissan’s continued investment in the North East means we can capitalise on the huge economic opportunities provided by the transition to electrification. It also means as a region, we can play a leading role in government’s ambition to reach net zero by 2050.”

Home / Economic assets and infrastructure

North East LEP Annual Review 2022-2023 Published

The North East Local Enterprise Partnership (LEP) has published its Annual Review detailing its activities during 2022-2023.

The LEP’s Annual Review highlights key achievements over the last 12 months and explores the new funding and decision-making powers that will be created as part of the North East Devolution Deal.

Particular achievements highlighted in this year’s report include the relaunch of the North East Evidence Hub, which brings together key data and evidence about the region to support decision making and to make evidence more accessible for stakeholders and partners across the region.

The report also describes how independent evaluation has demonstrated that businesses supported by the Growth Hub have achieved a £8.8k turnover per employee improvement and that overall, £292million additional Gross Value Added and 4,435 additional jobs have been added to the economy since 2017.

In Skills, the team has continued to make an impact locally and nationally in delivering the government’s technical education agenda for young people and adults, bringing together key regional stakeholders to develop and deliver a regional Apprentice Ready vision.

The LEP has also launched The North East Commercial Property Investment Fund, managed by FW Capital, this year. The fund provides loans of between £2 to £7 million to support new or refurbished grade A commercial office and industrial space. It is predicted that it will create up to £119 million investment over the next 15 years, creating 5,600 jobs and developing 140,000 sq m of commercial space.

Transport has always been central to the Strategic Economic Plan, lead fiercely by colleagues at Transport North East. The Annual Review details the significant investment that has been secured and released to drive forward the Transport Plan in 2022/23.

Helen Golightly, LEP Chief Executive Officer, said: “This Annual Review is full of activity that is driving forward our mission to deliver the North East Strategic Economic Plan. Our plan has always been to create 100,000 more jobs in the economy, of which 70% are better jobs, between 2014 and 2024 as we strive to create a stronger, greener and more inclusive economy for the region.

“It is currently a time of transition for the LEP following the exciting announcement of the North East Devolution Deal. The Annual Review details our commitment to a strengthened region-wide partnership working with colleagues to play our part in realising this ambitious, historic deal.”

Click here to view the 2022/23 Annual Review.

Home / Economic assets and infrastructure

In discussion: North East export team becomes a part of the Department for International Trade

Julie Underwood is Head of Delivery for the North East Export Team, which supports North East businesses throughout their exporting journey.

The team has recently become a part of the Department of International Trade and relocated to Darlington Economic Campus. Julie explains why this change has happened and the impact it will have on support for businesses in the region.

You and your team have now made a move to the Department for International Trade, from the North East England Chamber of Commerce. Why has this happened?

It’s a key part of the government’s agenda to have advisers working closely with businesses in the regions. By bringing our team into the Department for International Trade (DIT), it means we can react quickly to central decision-making and, at the same time, we can feed back on the needs of businesses in the North East, provide intelligence from our region and influence policy.

We’re based in new Darlington Economic Campus alongside colleagues from five other government departments, including the Treasury and the Department for Business, Energy and Industrial Strategy. It’s the first time we’ve been able to work closely with cross-departmental government colleagues in this way which in itself is a huge benefit for the region.

What are the implications for your work? Will businesses notice a difference in what you do?

No, we still have a dedicated team that is for businesses in the North East and which is based here in the North East. The support we offer will continue, including our Export Academy, which is a free training programme for businesses which we run both online and in-person. We also have specialist programmes on topics like e-commerce and working with distributors, and we organise trade missions to introduce North East businesses to overseas customers. Businesses can also access our Internationalisation Fund, which can provide a maximum grant of £9,000 to support activities to help them export. We would encourage any business to get in touch to explore how this can really help them with their export plans.

This programme of support is unchanged, the team is unchanged, and support for North East businesses remains front and centre of what we do. But now we’re much closer to central decision-making and we have brilliant opportunities to share knowledge with our colleagues across the UK.

In addition to our ongoing work with businesses, we have well established relationships with partners in the North East, the North East LEP being a key example, and we will continue to work together as partners in the region to drive forward the North East trade and export strategy proposition and inform future trade deals about North East assets.

The economy is going through difficult times. What can we do to ensure we keep trading?

It has been tough for businesses, but as travel has opened up it’s had a big impact.

We did a lot of virtual work throughout the pandemic but now we can travel overseas, we need to take the opportunity to meet international buyers in person, and we have trade missions to markets including Japan and Norway coming up over the next few months and many more in the pipeline

We’ve created a network of export champions in the North East who are happy to share their expertise with other businesses, and we’re piloting some new events specifically for businesses from under-represented communities.

And in November the Green Trade and Investment Expo, which will bring together UK businesses with global investors, is happening in Gateshead, giving the region a leading role in showcasing our renewable energy sector.

There’s lots going on, a lot of support available, and as part of the DIT, we’ll continue to give North East businesses all the support they need to access overseas markets, and make that as easy a process as possible.

Find out more about export support for North East businesses at www.NorthEastGrowthHub.co.uk and see the North East’s Trade and Export Strategy here.

You can also read an update on the North East Trade and Export Strategy, from North East LEP Director of Policy and Strategy, Richard Baker, here.

Home / Economic assets and infrastructure

Getting Building Fund support sees expansion of AirView Park Enterprise Zone

Two new state-of-the-art flexible workspace buildings are currently being built on the AirView Park development in Woolsington following a £944k investment from government’s Getting Building Fund.

Strategically located next to Newcastle International Airport, AirView Park aims to grow the number of businesses in the North East involved in international trade and attract inward investment from startups and SMEs keen to take advantage of the region’s global trade links.

When complete, the two workspaces that form part of Phase Two of the development will have the potential to support up to 100 new SMEs and provide the flexibility for businesses to expand and grow, creating more local jobs and providing a boost to the North East economy.

The £944k awarded to developer Tynexe Commercial Ltd from the Getting Building Fund ensured essential infrastructure works could be delivered during the coronavirus pandemic and construction of the new employment sites could continue.

Helen Golightly OBE, Chief Executive of the North East Local Enterprise Partnership, said: “By responding to the changes brought about by the pandemic and creating office space that meets the needs of businesses both now and in the future, the new developments at AirView Park have already generated a lot of interest.

“By focusing Getting Building Fund investment on key strategic sites like AirView Park, the North East LEP is helping to create the right environment for businesses to grow and create more and better jobs in the region.

“The development’s location next to Newcastle International Airport also supports the North East LEP’s ambition to increase the number of North East businesses that export goods and services from 6% to 9.5% by 2030.”

One of 21 Enterprise Zones sites across the North East, AirView Park aims to create more SME businesses focussed on growing and maximising trade and inward investment between North East England and the rest of the world. It also aims to attract UK or global companies looking to build or establish a strategic northern base, as well as fully support organisations wishing to take advantage of new and existing export routes.

The North East Trade and Export strategy – published in 2021 by the North East LEP, North East England Chamber of Commerce and Department for International Trade – showed approximately 4,500 businesses in the North East region (North East LEP and Tees Valley Combined Authority areas) currently export goods and services. Businesses in the North East LEP area that currently export goods and services typically generate over £15bn of revenue from exporting each year.

One of the new buildings will provide a dedicated Business Support Hub for North East SMEs, offering a physical service centre for export expansion. All key exporting services and resources will be co-located at the Hub, creating a launch pad for businesses to begin international trade.

The second building, Denyer Court, will offer multiple leased office units or a single occupancy HQ building.

Mike Clark, Director of Tynexe Commercial Limited, developers of AirView Park, added, “We are delighted to have the full support and backing of the North East LEP as the allocated grant funding has enabled us to progress the site at pace, delivering a high quality scheme to meet market demands at a time when needed.

“We are already receiving enquiries from potential new occupiers, some operating in emerging and fast growing industries, so we are very confident that Phase Two and AirView Park will become a key site for Newcastle and the wider North East economy.”  

Mark Hunt, Chief Financial Officer at Newcastle International Airport, said: “The Airport provides multiple daily connections to some of the largest airport hubs across Europe and the Middle East, seamlessly connecting businesses in the region to the rest of the world. AirView Park is a prime site that provides a lot of opportunity for growth, export links and inward investment. We are very much looking forward to the completion of the scheme and welcoming the companies that choose to locate there.

“Global trade relations are key to the continued growth of the North East, and as we begin to see a way out of the economic downturn, our export links with countries like Pakistan are very important. Collaborations and strategic partnerships linking local companies with those overseas can help deliver a stronger recovery and so Newcastle International Airport, as a gateway to international markets, very much supports discussions like this with potential trade partners.”

Newcastle City Council’s Cabinet member for Resilient City, Cllr Alex Hay, who has responsibility for jobs and the economy, said: “AirView Park is going to be an important generator of jobs being so close to Newcastle International Airport – the main gateway to the region.

“The construction of these two buildings will form a key part of that development and provide a further boost to the local economy once they are filled with small to medium-sized businesses, so I warmly welcome them.”

When complete, AirView Park will offer 175,000 sq ft of bespoke offices, tailor-made to suit businesses looking to relocate to more cost effective out of town premises. AirView Park is already home to the national headquarters of Bellway Homes plc.

The Getting Building Fund was established early in the coronavirus pandemic to kick-start the economy, create jobs and help areas realise growth opportunities coming out of the coronavirus pandemic. The North East Local Enterprise Partnership is managing £47m awarded through the Getting Building Fund to support capital investment across the North East. 

The two new state-of-the-art flexible workspace buildings supported by the Getting Building Fund are due to be completed by the end of the year.

For more information about AirView Park visit www.airviewpark.co.uk.

Find out more about the Getting Building Fund and the other funding programmes managed by the North East Local Enterprise Partnership.

Home / Economic assets and infrastructure

The Sustainable, Smart Port.

Port of Tyne to demonstrate blueprint for decarbonisation of UK ports

The Port of Tyne will unveil a new sustainable smart port platform that will provide a blueprint for its transition to net zero at an event held at its Maritime 2050 Innovation Hub on Wednesday 6 April.

As part of the Clean Tyne Project, the Port of Tyne and Siemens have worked with Connected Places Catapult, Newcastle University and the North East LEP to deploy a real-time digital platform for scenario planning and feasibility studies that will help determine the future power needs of the Port. Understanding its current and forecast power usage as well as its infrastructure opportunities will enable the Port to define its path to decarbonisation – and ultimately achieve its vision of becoming a net-zero port by 2050, part of the Port’s overall Tyne 2050 strategy for growth.

The Clean Tyne project was granted funding by the Department of Transport to create a blueprint for the decarbonisation of the UK’s ports. The project is part of the Clean Maritime Demonstration Competition, which sees £30m in total invested in a number of initiatives to reduce emissions from the maritime sector.

The project consortium has built on its extensive technical expertise, academic research and wider industry knowledge to integrate multi-vector renewable energy information into the purpose-built digital port platform. This allows the partners to determine which renewable energy implementations will offer the greatest benefits to the Port and what capacity it will need from the grid going forward ensuring the optimisation and resilience of clean energy supplies for shore power, land-based infrastructure and other use cases.

By using this form of planning, the Port of Tyne can evaluate the benefits of introducing new technology solutions before implementing them, thus minimising risk. The planning will focus on multiple areas including optimised operations, grid compliance and flexibility, enhanced communications using 5G, the electrification of shipping and logistics, the reduction or avoidance of fossil fuels and the development of new digital skills.

Testbed for other UK ports

The digital platform will play a fundamental role throughout the Port’s decarbonisation journey by supporting the creation of business cases, budget planning and investment cases. It will also allow the project consortium to assess the technical, environmental and economic impact of the Port. Using the Port of Tyne as a testbed, the Clean Tyne project’s digital energy platform has enabled Siemens and its partners to develop a universal blueprint for decarbonisation that can be replicated in other port environments as well as other industries.

The event on 6 April will be held in-person and online. To register to attend the event, visit Port of Tyne – Clean Tyne Project | Eventbrite

Quotes from the project partners

“The success of the Clean Tyne project is testament to the expertise, research and collaboration of the consortium. The project outputs show real benefits to decarbonisation efforts across the UK Port Sector and will be the backbone for future developments in that space. This tool will be pivotal for the Port of Tyne to achieve its ambitious decarbonisation and environmental targets, and we are already exploring how we can expand the benefits further. Using the 2050 Innovation Hub at the Port of Tyne, the first of its kind aligned to Maritime 2050, has given us the perfect platform to demonstrate and disseminate the learnings and outputs with all ports in the UK.” Ian Blake, Head of Innovation and Technology at the Port of Tyne

“There are hundreds of ports across world, all burning a lot of diesel and impacting the environment. Through the Clean Tyne project with the Port of Tyne we have been able to undertake an advanced feasibility study and to create a dependable and scalable roadmap for the decarbonisation of ports worldwide.” Ian Lloyd, Head of Microgrid Solutions, Siemens

“This project is a great example of how digital technologies can be applied to drive decarbonisation of our regional infrastructure.  North East LEP via the North East Energy Catalyst will work to share the results of the project and help other ports and industries learn from the findings in the Clean Tyne project.” David Lynch, Energy Innovation Partnerships Manager – North East LEP

“Through the Clean Tyne project, we have been able to apply novel concepts of digitalisation in real-world energy systems to help identify solutions for ports that cut across energy systems, marine transport, and data – all helping reduce carbon emissions. We are excited to have the opportunity to present the findings to the wider maritime community.” Dr Haris Patsios, Senior Lecturer in Power Systems, Newcastle University

“Ports are critical stakeholders in the future clean energy transition at sea and on land. Access to and supporting renewable energy sources such as solar, wind and tidal so ports become energy hubs across multiple modes of transport; is vital if we are to accelerate our journey to net zero. This has been an exciting project that demonstrated how digital infrastructure helps make greener ports possible. The Port of Tyne now has a set of clear next steps and we have invaluable transferable insight for ports across the UK.” Paul Wilson, Chief Business Officer, Connected Places Catapult

Ends.

Notes to editors

The Clean Tyne – UK Blueprint for Decarbonisation project is part of the Clean Maritime Demonstration Competition, funded by the Department for Transport and delivered in partnership with Innovate UK.

Announced in March 2020, and part of the Prime Minister’s Ten Point Plan to position the UK at the forefront of green shipbuilding and maritime technology, the Clean Maritime Demonstration Competition is a £20m investment from government alongside a further c.£10mfrom industry to reduce emissions from the maritime sector. The programme is supporting 55 projects across the UK, including projects in Scotland, Northern Ireland and from the South West to the North East of England. As set out in the Clean Maritime Plan (2019), Government funding has been used to support early-stage research relating to clean maritime. The programme will be used to support the research, design and development of zero emission technology and infrastructure solutions for maritime and to accelerate decarbonisation in the sector.

About the consortium partners

Port of Tyne is one of the UK’s major deep-sea ports – operating in bulk and conventional cargo, car terminals, cruise & ferry, port centric logistics and estates. Overall, the Port of Tyne enables £557 million to be added to the North East economy, supporting 9,300 jobs directly and indirectly. The Port’s cruise and ferry business adds another £57 million to the local economy and 1,600 jobs.

Port of Tyne was recently awarded two Maritime UK 2020 Clean Energy Awards for Clean Energy Operator and Clean Energy Enabler.

One of the UK’s largest trust ports and entirely self-financing, the Port receives no Government funding, is run on a commercial basis and reinvests all profits back into the Port for the benefit of all of its stakeholders.

As one of only two deep sea ports in the North East of England, 83% of the world’s largest cargo ships can be accommodated at the Port of Tyne.

During a decade of development, the Port of Tyne has invested over £130 million in diversifying its operations to handle a growing range of commodities.

Siemens Smart Infrastructure (SI) is shaping the market for intelligent, adaptive infrastructure for today and the future. It addresses the pressing challenges of urbanization and climate change by connecting energy systems, buildings and industries. SI provides customers with a comprehensive end-to-end portfolio from a single source – with products, systems, solutions and services from the point of power generation all the way to consumption. With an increasingly digitalized ecosystem, it helps customers thrive and communities progress while contributing toward protecting the planet. SI creates environments that care. Siemens Smart Infrastructure has its global headquarters in Zug, Switzerland, and has around 71,000 employees worldwide.

Connected Places Catapult is the UK’s innovation accelerator for cities, transport, and places. We provide impartial ‘innovation as a service’ for public bodies, businesses, and infrastructure providers to catalyse step-change improvements in the way people live, work and travel. We connect businesses and public sector leaders to cutting-edge research to spark innovation and grow new markets. We run technology demonstrators and SME accelerators to scale new solutions that drive growth, spread prosperity, and eliminate carbon.

Newcastle University, UK, is a thriving international community of some 27,750 students from over 130 countries worldwide.

As a member of the Russell Group of research-intensive universities in the UK, Newcastle has a world-class reputation for research excellence in the fields of medicine, science and engineering, social sciences and the humanities.

Its academics are sharply focused on responding to the major challenges facing society today. Our research and teaching are world-leading in areas as diverse as health, culture, technology and the environment.

The Research Excellence Framework 2014 (REF) placed Newcastle University 16th in the UK for Research Power and the vast majority of our research (78%) was assessed to be world-leading or internationally excellent.

Newcastle University is committed to providing our students with excellent, research-led teaching delivered by dedicated and passionate teachers. This is reaffirmed by achieving the best possible outcome – a Gold Award – in the Teaching Excellence Framework (TEF).

Newcastle is placed joint 146th in the world and in the top 20 in the UK in the latest Times Higher Education World University Rankings.

The North East Local Enterprise Partnership (North East LEP) is a public, private and education sector partnership. We are one of thirty-eight LEPs in the country and are responsible for promoting and developing economic growth in the local authority areas of County Durham, Gateshead, Newcastle, North Tyneside, Northumberland, South Tyneside and Sunderland. We produce our area’s Strategic Economic Plan, which acts as a blueprint for the activities that need to take place to improve our economy.

Home / Economic assets and infrastructure

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

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How international students help create a more prosperous North East economy

By Jane Robinson, Pro-Vice Chancellor, Engagement & Place at Newcastle University


The North East is home to some of the best universities in the world, and because of our global reputation we welcome thousands of international and EU students every year.

In the 2018/19 academic year 12,595 international first year students came to study in the North East, and a new report by the Higher Education Policy Institute and Universities UK International has looked in detail at the benefits international higher education students bring to both the UK and regional economy.

The report shows the 2018/19 cohort of international students in the UK delivered a net economic benefit to the country of £25.9 billion. In the North East LEP area, the total net impact on the economy was just under £1bn (£975.9m).

In fact the North East region, including Tees Valley, delivers one of the highest average impacts per parliamentary constituency in the country; an estimated £460 per member of the resident population, second only to London and on par with Scotland. Newcastle upon Tyne East is ranked fourth in the top 20 parliamentary constituencies in terms of the net impact international students have on the economy.

The UK’s exit from the European Union and the coronavirus pandemic has undoubtedly created barriers for international students to study in the UK, something that is reflected in EU student recruitment, which is currently lower than in 2020. International student numbers have, however, stayed relatively stable in the 2020/21 academic year.

Whilst the findings in the report are extremely positive for the North East region, it fails to include is some of the other important indirect benefits international students bring to our regional economy, such as tax revenues, investment and trade links, and the soft diplomatic power exerted on an international stage as a result of the networks built up during their stays.

We only need to look at the hugely successful alcoholic tea company NOVELTEA, which was founded by two international Newcastle University students in 2016 to see this in action. Based in Newcastle, the company has expanded into several international markets – including Germany and China – and plans to create further jobs as it eyes expansion into the US. By choosing to remain in the North East to grow their business, NOVELTEA’s co-founders, Vincent Effroth and Lukas Passia, have created new jobs, boosted the North East economy, established positive trade links and raised the profile of our region internationally.

Newcastle University’s START UP programme is also supporting and endorsing ambitious international graduates to remain in the UK to start and grow businesses. Four of the programme’s graduates have been accepted onto the Department for International Trade’s (DIT) prestigious Global Entrepreneur Programme (GEP), which connects companies into the global ecosystem and supports them to scale their solution to address global opportunities. The partnership between START UP and GEP allows highly motivated, talented entrepreneurs to thrive in our region and add significant value to both the regional economy and UK PLC.

The Higher Education Policy Institute and Universities UK International report focuses solely on the economic benefits international students bring to academic institutions and destinations, but I think it’s important to remember the North East benefits in a number of other ways too. The wider cultural and societal impacts are just as important to our region.

At Newcastle University alone we have over 150 nationalities represented on campus, and that diversity helps create a more vibrant and creative environment for all our students.

We’re seeing many international students remain in the North East after their studies to take up skilled positions in our emerging sectors, or start new businesses of their own, which go on to employ people and contribute to our local economy.

If we think about the North East’s strengths in data and digital, life sciences and the green economy, as well as our cultural and creative opportunities, the global links we’ve established through our international students can create opportunities for North East businesses to attract talent and investment.

I also firmly believe our UK students enjoy a better learning experience because of the diversity on our campuses. It’s a chance for them to build connections across the world that can open up a world of opportunity.

The report makes for fascinating reading, and further demonstrates the essential role universities in the North East play in delivering a stronger North East economy and a vibrant and diverse place to live, work and study.

To read ‘The costs and benefits of international higher education students to the UK economy’ visit www.hepi.ac.uk.

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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.

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Energy Minister visits projects putting North East at the forefront of Net Zero drive

As the North East is poised to become the UK’s first low carbon heat cluster, the government’s Minister for Business, Energy and Corporate Responsibility, Lord Callanan, is touring the region to see some of the projects which are leading the way in the nation’s drive to achieve Net Zero carbon emissions.

The visit follows the launch of three nationally significant activities in the region:

  • The first, a report highlighting the potential of mine energy for the UK published on behalf of the BEIS Energy Hub Network – which uses natural geothermal-heated water that has gathered in the underground networks of former deep coal mines – in helping the UK to achieve its Net Zero target by 2050.
  • The second is Gateshead Council’s Zero Carbon Heat Strategy, outlining its ambition to make all Council buildings and homes net zero by 2030, though major investment in heat networks, as well as supporting clean hydrogen and heat pumps.
  • And the third, is the launch of a ‘High Potential Opportunity’ to promote the North East and Tees Valley as an inward investment location for the UK in heat networks.

Andrew Clark, Energy Lead at the North East Local Enterprise Partnership (North East LEP), said: “The North East has an existing skills base, supply chain and infrastructure, plus a nationally-significant project pipeline, which means we are ideally positioned to make a huge contribution to the UK’s drive to achieve Net Zero.

“During today’s visit, we were able to showcase some of the globally-important energy projects which are taking place in our region, and demonstrate how the North East is on its way to becoming the UK’s first cluster for low carbon heat innovation, supply chain and delivery.”

Lord Callanan was able to meet beneficiaries of the Government’s Heat Networks Investment Project (HNIP); two mine water heat networks in the region are among those to have been awarded funding by Triple Point Heat Networks Investment Management in partnership with the Department for Business, Energy and Industrial Strategy (BEIS).

The Minister visited Seaham Garden Village district heat network in County Durham, which will supply low-carbon geothermal heat from former coal mines to a new development to the south of Seaham. It is hoped that the scheme will be a commercially viable sustainable energy demonstrator project that can be duplicated across the UK coalfields, which contain 25% of the UK population.

Energy Minister, and Heat Networks Industry Council Ministerial Champion, Lord Callanan of Low Fell said: “Heating our homes and workspaces without causing carbon emissions is going to be key to tackling climate change and heat networks are proving an effective solution as well as opening up huge potential for investors at home and abroad.“

These low-carbon technologies are allowing us to build back greener from the pandemic, and as the Heat Networks Industry Council’s Ministerial Champion, I’m excited to see the opportunities they are providing in the North-East. “As a native of this region, I’m well aware of how coal dug from under our feet powered the industrial revolution 200 years ago and it’s fitting that that legacy and heat taken from former mines is now helping drive forward a new Green Industrial Revolution.”

Councillor Mark Wilkes, Durham County Council’s Cabinet member for neighbourhoods and climate change, said: “We’re delighted to be part of the drive towards achieving Net Zero carbon emissions.

“The proposed district heating system at Seaham Garden Village will use ultra-low carbon energy from the former mine workings.  

“The use of this technology could be replicated in other parts of County Durham, the North East region and elsewhere across the UK’s former coalfield sites.” 

Also on the agenda was a visit to the Gateshead District Energy Scheme, which has been awarded funding to double its heat network, using geothermal energy from a network of old mine workings 150 metres below Gateshead to supply heat to homes and businesses. 

John McElroy, cabinet member for the environment and transport at Gateshead Council, said: “Our work on heat networks and harnessing geothermal heat shows our ambition to tackle climate change and reach our zero carbon goal by 2030.

“We already have a significant track record of investment in heat networks, so this is proven technology – now we need to move across to sustainable sources of energy and roll out zero carbon heating to a much wider audience across the borough.”

Ken Hunnisett, Project Director at Triple Point Heat Networks Investment Management said: “These two projects represent the first two mine energy schemes to be awarded HNIP funding and signify genuine levelling up in the North East in preparation for net zero. With mine energy ideally suited to district heating, the ability of our coalfields to provide clean, affordable and perpetually renewing heat should be a source of great national pride.” 

Richard Bond, Innovation and Engagement Director at the Coal Authority, said: “Using heat from former coal mines is an innovative way to decarbonise heating supplies, attract investment, create employment and lower energy bills. The Coal Authority is actively working with a number of partner organisations across the country, including the North East Local Enterprise Partnership, to help unlock the potential of mine water heat to make UK homes greener, warmer and more efficient.”

Also in Gateshead, Lord Callanan joined Anne-Marie Trevelyan, MP, Minister for Energy, Clean Growth and Climate Change who was officially opening Hydrogen House, the UK’s first house to demonstrate the use of hydrogen-fuelled appliances in a real-world setting, at Northern Gas Networks’ Low Thornley site. 

Andrew Clark added: “These projects are not just regionally significant; they’re leading the way for the entire nation and no doubt contributed to Government’s recent decision to select Heat networks in the North East and Tees Valley as part of the Department for International Trade’s High Potential Opportunities Programme (HPO). We now have a completed investment proposition to promote to foreign investors and drive investment into the region.

“We’ll continue to work with government, the energy sector in the North East, and our partners in Tees Valley, to push forward the work taking place in our region which will help the UK cut its carbon emissions and help tackle the issue of climate change.” 

On the High Potential Opportunities Programme, Minister for Investment, Gerry Grimstone said: “Our HPO programme is designed to showcase the best opportunities across the UK to international investors and attract investment that will help the UK build back better.

“Attracting investment into the UK’s clean growth industries like heat networks is critical, and with so many projects in the pipeline and such a fantastic ecosystem, the industry should take note of this huge opportunity. This programme along with the Global Investment Summit we are hosting in October will be a chance to show why the UK is a great place to invest in a greener future.”

Find out about the North East LEP’s work to support the North East energy sector here.