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North East Local Enterprise Partnership reaction to ONS regional labour market statistics

The North East Local Enterprise Partnership’s (North East LEP) Strategy and Policy Director, Richard Baker, has commented on today’s regional labour market statistics, released by the Office for National Statistics (ONS).

“As we mark the anniversary of the first lockdown, today’s data release is a timely reminder of the changes which COVID-19 has meant for our labour market. It provides the latest official data which includes regional employment information for the three months up to and including January 2021 and also annual comparisons.

“In the most recent months, the headline data has been stable. The employment rate in the North East region, which includes the North East and Tees Valley LEP areas, remains the lowest in England at 71.3 per cent, 0.1 percentage points higher than in the last quarter but 0.4 percentage points down on a year ago.

“The region has the second highest unemployment rate (6.2 per cent of the economically active) and the highest proportion of working age people who are economically inactive (23.8 per cent). Almost 30,000 workers in the region have been made redundant during the past year.

“However, some of the recent impact of COVID-19 has been masked by an increase in the use of furlough in the region. Over 114,000 North East employments were furloughed at the end of January, more than double the total of three months earlier. Most furloughed workers continue to be classified as employed in the official statistics.

“The impact on different groups in our population has been different. Younger people have experienced particular challenges both in employment and training and there have also been different patterns in the impact for men and women in the past year. The number of unemployed women has increased by 14 per cent, while male unemployment is lower (by about 8 per cent). Almost 52 per cent of furloughed workers in the North East at the end of January were female.

“The progress we are seeing towards the lifting of lockdown restrictions offers hope for the thousands of businesses unable to trade. Support for these businesses remaining under restrictions needs to continue.

“The North East LEP will continue to work with government as we look to drive forward our economy and address some of the key challenges which COVID-19 has created in our region.”

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Ground-breaking Careers Pilot Hailed a Success

An independent evaluation of the Gatsby Benchmarks of Good Career Guidance Pilot has been releasedThe North East Local Enterprise Partnership (LEP) played a central role in the Pilot and Skills Director Michelle Rainbow reflects on this and how even after the Pilot was completed, the Benchmarks have remained at the heart of the North East Ambition programme.  

I was so proud when I read the evaluation – to hear the Pilot described as transformational and to know that the North East played such a pivotal role has been a real honour.   

We’ve always believed that the right careers education can have lifelong rewards for young people and to see that recognised independently today is fantastic.  

We started with 12 schools, three colleges and one pupil referral unit taking part in the Pilot, which ran across two academic years (2015/2016 and 2016/2017). 

The Pilot was designed to support those schools and colleges to implement the eight Gatsby Benchmarks of Good Career Guidance, evaluate how they were implemented, and identify what impacts might result from this. Today’s report notes the “observable and positive impact on learners, especially those who are most disadvantaged” – demonstrating the value that the Benchmarks can bring.  

The North East Strategic Economic Plan is our blueprint for growth in the North East. We know that skills and people are central to successful economies and through our work with the Pilot we’ve defined a programme with careers at its coreOur approach was bolstered by government integrating the Benchmarks into the national careers strategy, which requires every secondary school to adopt the Benchmarks and North East Ambition is here to support them to do that.  

North East Ambition’s key principle is “each and every”, making sure that every single student has the opportunity to access good careers guidance and recognise what their pathway could be. Why? Because we too believe it can be transformational.  

We have secured £3.1m European and match funding to support our North East Ambition programme that sees us working with 170 secondary schools and all nine of our FE colleges and two 6th form centres. This is a clear demonstration of our commitment to our pledge to work with each and every pupil in our region so that no one is left behind.  

We have also launched a new Pilot to adapt and translate the Benchmarks for primary aged pupils. There’s increasing evidence to show that children begin to form ideas about their futures when they’re as young as five or six. And by the age of 10, many young people have already made career limiting decisions, which are fixed by the time they’re 14. Imagine how we could change that trajectory if we could embed Benchmarks that related to primary aged pupils. We are one year in and our results are extremely encouraging.  

We haven’t let the impact of COVID-19 slow us down either. The trusted relationships we have built with the schools and colleges through over the past five years gave us the established network and routes into schools and colleges that we needed to continue to support young learners at the most challenging time. 

One of the things we have been incredibly keen to keep going is helping young people experience the world of work even during COVID-19 where they can’t physically get into workplaces. This is why, in response to requests from Careers Leaders, we have developed a Work Experience Framework, which will be launched next week. As an online resource, the site will support students and employers to facilitate virtual work experience  

The Gatsby Benchmarks of Good Career Guidance Pilot was an incredible success and we are grateful that our partnership with the Gatsby Foundation enabled us to play such a critical role in it. But the work is not over – this is just the start as we continue to lead the way in showing our young people there is a world of opportunity available to them and anything is possible. 

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North East Coalition files world-class Freeport bid

North East England Freeport to create 60,000 jobs, over £3.4bn GVA and £2.7bn private sector investment.

A dynamic business and public sector partnership based in the UK’s leading export region has lodged an exciting and innovative bid for the North East England Freeport, which economic experts have predicted would generate a £2.1 billion boost to UK exports, plus many other significant benefits.

Government support for the proposal would see the North East England Freeport provide a uniquely ambitious and collaborative opportunity for the whole region to thrive, boosting the local economy by over £2.4 billion over 10 years and providing a gateway to long term global competitiveness. Through the North East England Freeport, over 30,000 new jobs are expected to be created for the region, of which 13,000 are highly paid ‘better jobs. A further 31,000 jobs will be generated in the construction industries.

The regional consortium formed to operate the North East England Freeport as a virtual free trade zone includes Nissan, the Ports of Tyne, Blyth and Sunderland, Newcastle Airport, seven local and two combined authorities, the North East Local Enterprise Partnership (LEP), plus leading north east universities and innovative organisations. The sites involved will be inter-connected and secured using a state of the art, cybersecure perimeter.

Economic analysis completed by consortium members and validated by an independent economic adviser demonstrates that the North East England Freeport would deliver outstanding economic benefits to the region. These include:

  • 61,458 new jobs across the construction, manufacturing, logistics, energy, innovation and business sectors
  • £3.4 billion GVA across the local region
  • Expected GVA of £110,000 per freeport worker, with median earnings of freeport workers 40-62% higher than current regional levels across all sectors
  • Total GVA uplift of £3,000 per capita within the North East LEP area
  • £2.7 billion in new regional private sector investment
  • £2.1 billion additional UK exports over 10 years

By generating tens of thousands more and better jobs, the North East England Freeport will become a national hub for global trade and investment, a hotbed for innovation, a catalyst for sustainable economic regeneration, while minimising barriers to trade. Each site and partner in the freeport bid consortium will contribute to realising a best-in-class offering that will drive investment and deliver a high impact, economic boost that fully exploits the North East’s unique abilities in advanced manufacturing, life sciences, digital, clean energy and business services.

Crucially, the North East England Freeport will provide a bold blueprint for growth, compromising of a multi-site, digitally connected and enabled cybersecure boundary area, with robust customs zones. This will enable the North East region’s clusters to manufacture goods cost efficiently and trade internationally, benefiting from tax advantaged policy to stimulate economic development. It will contribute to levelling up in one of the areas of the country where it is needed the most.

The North East England Freeport will include three significant tax sites totalling approximately 600 hectares on which businesses will be able to receive a range of special incentives to invest and grow. They are located in some of the most deprived communities in the region and will create new jobs and supporting skills and employability programmes to ensure jobs are accessible to local people. The activity from these businesses will generate benefits across the region.

The Freeport will be led by a collaborative Governance Board which will bring together leaders from business, local government, higher education and the ports to drive forward the North East England Freeport at pace. This demonstrates the regions determination to deliver long term transformation and commitment to level up the UK economy.

Matt Beeton, CEO at the Port of Tyne and Interim Chair of the North East England Freeport, said: “Our model offers an unrivalled, ‘best of all worlds’ approach, uniting the private and public sectors to provide the region with an exceptional opportunity to benefit from the levelling up potential of digitally enabled economic zones. Developing over 60,000 new jobs in the region and £3.4bn regional GVA is incredibly important and demonstrates that ports are a catalyst for future economic growth.”

Martin Lawlor, CEO at the Port of Blyth said: “This bid consortium offers unrivalled clean growth and manufacturing expertise, and we have the vision, ambition and experience to make this a flagship freeport the UK can truly be proud of. We are excited by both the innovation within our bid and the transformative impact our freeport will have on the region if we are successful.”

Nick Jones, Chief Executive Officer of Newcastle International Airport, said: “Fast and frequent connections to growth markets are key to the success of the freeport and the advancement of the North East’s key business sectors. Air connectivity will strengthen the North East England Freeport proposition and will help to drive productivity improvements through logistics supply chains, with the ultimate aim of supporting the growth sectors in the region – from pharmaceuticals and life sciences to technology and advanced manufacturing. The Airport is delighted to play a role in the across-region partnership that will deliver this project.”

Lucy Winskell, Chair of the North East LEP said: “The North East is a perfect candidate for a freeport given its trading pedigree, its capabilities in green industries and the challenges it faces.  Our model is deeply collaborative and highly innovative. Our seaports, airport, businesses, universities and political leaders are working together to deliver a cutting edge, digitally enabled freeport which brings new growth across our region and regenerates many of the communities that need it most.”

Jamie Driscoll, Mayor of North of Tyne said: “The North East has always been a strong manufacturing and exporting region.  We want to secure the future for our workers, our kids and our grandkids.  This means developing our low carbon industries and building a green future.”

Councillor Graeme Miller, Chair of North East Combined Authority said: “This is a highly collaborative and compelling bid with the ability to transform the whole of the North East. Crucially, it provides significant opportunities for Nissan and the International Advanced Manufacturing Park (IAMP).”

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North East LEP begins valuable knowledge exchange with Ingolstadt

A virtual meeting between a delegation from Ingolstadt and a coalition of North East leaders is the latest in a series of partnerships set up by the North East Local Enterprise Partnership (LEP) to share experiences and ideas in a bid to tackle global skills challenges.

Senior representatives from the Ingolstadt Region will meet with members of the North East LEP, CBI, Department for Work and Pensions, Department for Education, Nexus and New College Durham, following discussions between the North East LEP and the British Embassy in Berlin over the last six months.

Ingolstadt has a similar framework to the North East LEP in terms of determining economic priorities and leading economic growth and job creation within the local area.

Those involved will consider the common challenges facing today’s globalised world, from education and skills, transport and climate change through to energy, digitalisation and the future of industry.

Lucy Winskell, chair of the North East LEP, said: “No single organisation has the answer to the big challenges faced by businesses and society right now. Pooling talent, thinking, experiences and resources is the right way to find solutions to shared issues.

“We’re thrilled to be building what will hopefully be a valuable long-term relationship with Ingolstadt, which like us is home to a thriving automotive industry and has many other commonalities.”

The North East LEP has long been a proponent of shared learning. It led the Gatsby Foundation National Career Benchmarks pilot which was based on research carried out in the Netherlands, Germany, Hong Kong, Finland, Canada and Ireland. The benchmarks have since been adopted as part of the Government’s careers strategy for schools and colleges, resulting in transformational changes to their careers programmes.

Its post-pilot work included providing support to the Barcelona City region and Welsh Government when they began the benchmarks’ implementation process, as well as hosting delegations from Hong Kong keen to learn more.

When the Government published its post-16 skills plan and independent report on technical education, the North East LEP visited Finland to gain a better understanding of its vocational education system and cascade best practice back.

Members of the team have attended Cities of the Future symposiums with delegates from around the world looking at skills for the future and fusion skills. Its involvement with the Ford Next Generation Learning Programme in Nashville has been a particular success.

Michelle Rainbow, the North East LEP’s skills director, said: “We are very much looking forward to meeting our peers from Ingolstadt and exchanging ideas and insight.

“From our involvement in the pioneering Ford Next Generation Learning Programme which is helping transform student attainment through industry links, through to the Gatsby Benchmarks, we have so much to share and know that our fellow leaders will too.”

Jill Gallard CMG, British Ambassador in Berlin, said: “Reducing carbon dioxide emissions at home and abroad in our COP26 presidency year is one of the government’s top priorities, as is the levelling up agenda. I am really pleased to see the North East sharing its experience of creating new jobs manufacturing electric vehicles with Ingolstadt and both sides learning from each other’s best practice on skills and training policies.”

Johannes Kolb, Area Director of Ingolstadt’s Agency for Employment, said: “I am looking forward to the exchange with colleagues from the North East of England. We can compare and learn from our respective labour market and skills policies – both within and outside the automotive sector.”

Jack Stallworthy, Policy Officer for Labour, Education, Health and Social Affairs, said: “It has been a delight to work with the North East LEP and Ingolstadt partners on the exchange. The North East has an exciting story to tell on preparing the workforce for working on electric vehicles.”

While the initial meetings are taking place virtually, it is hoped delegates from the North East will be able to travel to Ingolstadt to see activity in practice when it is safe to travel.

Read more about the  North East LEP’s plans for skills, employment, inclusion and progression here.

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Universities support North East’s economic recovery: START UP at Newcastle University

Universities have a vital role to play in helping the North East economy recover from the coronavirus pandemic.

The work being delivered by North East universities is supporting new and existing businesses to innovate and grow, and shaping and supporting a more sustainable and inclusive economy.

Durham University, Newcastle University, Northumbria University, University of Sunderland and Teesside University are all members of the North East COVID-19 Economic Response Group, which was established by the North East Local Enterprise Partnership at the beginning of the coronavirus pandemic to provide business resilience and ensure a collective response to the economic impact of COVID-19 on the North East economy.

Below is a case study about Newcastle University’s START UP offer, with a focus on the impact student and graduate businesses it supports are having within the region, and how they are responding to the COVID-19 crisis.

Newcastle University is ranked Top 5 in the UK for graduate entrepreneurship based on start-up turnover and investment raised. Based on average investment per start-up, the University is ranked Top 10 in the UK for scalable graduate start-ups and has generated the most investable graduate start-ups in the North East.

START UP is an equity-free support system for Newcastle University students and graduates up to three years and includes START UP Founderships, a pre-accelerator programme to ready the individual and their businesses for market entry, investment and success.

There are currently 203 START UP-supported businesses trading with a combined annual turnover of close to £60 million. Between them, they’ve raised over £19 million in external investment, won national and global awards and created 695 full-time equivalent jobs.

*All rankings and statistics from HE-BCI Survey 2018-19.

Over 70% of these businesses have remained in the North East, many of which recruit within the region, such as One Utility Bill, Nebula Labs and My Healthcare Recruit. Many the businesses are securing impressive investment figures.

In September 2020, Equiwatt raised over £300,000 to roll-out its innovative, energy-efficient app and create four new jobs in Newcastle. A month prior, Tea Ventures Ltd (NovelTea) welcomed 1,000 investors onboard as part of a crowdfund campaign that raised £577,000 to advance its plans to break into the US market, and in December, gained a further £1.4M investment for expansion and job creation.

Many of the START UP founders are persevering or finding ways to pivot despite challenges posed by the COVID-19 crisis. Some have received grant support through Newcastle University’s partnership with Santander Universities UK to help them survive and thrive in 2020, and others are applying to a newly launched fund of £40,000.

“Last year with Santander Universities, we launched a Covid-19 Fund to help our START UP community adapt in response to the global crisis, supporting some businesses to scale in order to meet new demand. This new Fund is about stimulating and supporting the next wave of entrepreneurs and changemakers who will have a critical role to play in our economic and social recovery” said Claire Adamson, START UP Manager, Newcastle University. “It is also about making visible and celebrating the individuals joining the growing community of Newcastle University students and graduates who have created their own graduate jobs as well as employment opportunities for others”, she added.

Santander Universities has been in partnership with Newcastle University since 2009 and has provided close to £1.7M to the University, with £189k appointed to enterprise activities.

Matt Hutnell, Director, Santander Universities, says: “Santander is committed to supporting higher education as well as local communities across the UK. We’re proud of our partnership with Newcastle University and we’re delighted to support their new Start Up Fund which will enable many more budding entrepreneurs to thrive, particularly during this challenging time.”

To find out more about START UP, visit www.ncl.ac.uk.

Click here to read more about how universities in the region are playing a central role in supporting the region to recover from the coronavirus pandemic.

Click here to read more about the North East COVID-19 Economic Response Group.

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North East Local Enterprise Partnership reaction to ONS regional labour market statistics

The North East Local Enterprise Partnership’s (North East LEP) Strategy and Policy Director, Richard Baker, has commented on today’s regional labour market statistics, released by the Office for National Statistics (ONS).

“Today’s figures continue to demonstrate the impact of COVID-19 on our economy with a continuing decrease in employment and a rise in the number of people claiming unemployment related benefits.

“The decision to extend the furlough scheme will protect many jobs for the future. However, it remains an uncertain time for businesses as a result of Covid controls and the need to continue to adapt to new processes following the Trade Deal with the European Union.

“It is essential that government continues to support the economy through the pandemic and invests to support the proposals in our COVID-19 Recovery Plan to enable us to drive forward our region’s recovery.

“The data released today covers the three-month period to November 2020. Employment continued to decrease during this time, both nationally and in the North East. The employment rate for the North East region, including the North East LEP and the Tees Valley LEP areas, was the lowest in England at 71.2 per cent. Both the unemployment rate and the number of working age people outside the labour market were much higher than they were between March and May 2020. The number of people being made redundant was at its highest level since 2009.

“In the North East LEP area, the number of people claiming unemployment-related benefits has increased by over 31,000 since March, with rates at 10 per cent in some areas. Employment in the region has fallen in most age groups, but the largest impact appears to have been on those aged under 25 and among 50 to 64-year-olds.

“These statistics include the November lockdown period but do not include the impact of the restrictions since Christmas.

“Strategic leadership and a strong partnership with government is more critical than ever – we will work closely with government to ensure that support for businesses is reflective of the need of our region.”

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North East Local Enterprise Partnership 2020 AGM 

Businesses will be given an update on plans to build a stronger North East post-pandemic economy at the North East Local Enterprise Partnership’s (LEP) 2020 Annual General Meeting.

Taking place online on Tuesday 24 November, the event will include a welcome from the recently-appointed Chair of the North East LEP, Lucy Winskell.

Lucy Winskell said: “As 2020 began, we were making good progress towards our goal of creating 100,000 more and better jobs here in the North East by 2024.

“However, we know that COVID-19 has hit businesses and communities in our region hard. That’s why we acted quickly to create the North East COVID-19 Economic Response Group with the CBI and the North of Tyne and North East combined authorities, which has recently published its proposal for counteracting this damage and creating a thriving post-pandemic economy.”

The AGM will also include updates on business growth, innovation, skills, transport connectivity, investment and infrastructure in the region, and how businesses are preparing for next year’s EU Exit.

Speakers at the event include Lucy Winskell, Chair of the North East LEP; Helen Golightly, Chief Executive of the North East LEP; and Paul Woods, Chief Finance Officer at the North East LEP.

Lucy Winskell added: “It’s been a tough year but there is still positive news to share as we look to the future of our region and the opportunities we have in sectors including digital, low carbon, life sciences and pharma.”

The 2020 North East LEP AGM will take place on Tuesday 24 November from 9.30am to 10.45am. Book your place here.

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Funding on offer for North East employers to help young people into work

New funding from government is on offer to help employers in the North East create job placements for young people who might otherwise be at risk of long-term unemployment.

Applications are now open for the Kickstart Scheme, which offers employers of any size, and operating in any sector, funding to create new, six month job placements for young people who are currently receiving Universal Credit.

Michelle Rainbow, Skills Director at the North East Local Enterprise Partnership, explains: “The aim of this new scheme is to help young people gain the skills, confidence and experience that they need in order to go on and find work once they’ve completed their job placement.

“It’s not just a short-term measure. In the North East we really want to provide high quality job placements that will not only give young people experience of the workplace, but also give them valuable opportunities to learn and progress.”

Businesses that want to create 30 or more job placements can apply directly to the Kickstart Scheme via www.gov.uk. For businesses that plan to create fewer than 30 placements, the North East LEP will apply on their behalf, grouping applications to create clusters of high quality placements across a range of sectors in the North East.

Organisations of any size are eligible to apply, as long as the placements they are creating help young people to become more employable, for example, by helping them develop their skills in the workplace, by providing support with interview preparation and CV development, or by providing careers advice and help with goal-setting.

The funding on offer includes 100% of the relevant National Minimum Wage for 25 hours a week, plus associated employer National Insurance contributions and employer minimum auto-enrolment pension contributions. There is also £1,500 per job placement available for setup costs, support and training.

Employers can spread the start date of the job placements until the end of December 2021.

Michelle Rainbow added: “We know that young people, many of whom have finished school, college or university during the pandemic, are facing a difficult time and might have seen their plans for the future turned upside down.

“That’s why programmes like this are so important, and why we are working with North East employers to help give the next generation the best possible start in what is one of the most difficult times any of us have seen.”

For more information about the Kickstart Scheme visit www.northeastlep.co.uk/kickstart.

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Proposed recovery and renewal deal for post-COVID North East published

North East COVID-19 Economic Response Group outlines proposals to transform and reimagine the North East economy

The North East COVID-19 Economic Response Group has published its Recovery and Renewal Deal for the North East, which outlines how a thriving post-pandemic economy could potentially be created.

The group is made up of the North East Local Enterprise Partnership (LEP), CBI, North of Tyne and North East Combined Authorities with the support of industry, to ensure the North East has strong economic leadership that acts quickly and collaboratively to mitigate the impacts of COVID-19.

Its proposal reflects on COVID-19 as a catalyst for change and details how the North East is ready and prepared to harness this catalyst to reinvigorate the North East economy.

The document sets out how, with the necessary support from the government, the North East could maximise opportunities to reach a goal of rapidly creating 100,000 good quality and secure jobs.

In the Recovery and Renewal Deal for the North East, the Group is asking the government for £2.8bn to directly unlock half of required 100,000 additional jobs quickly. It also wants accelerated confirmation of existing business cases, including Transforming Cities funding; a commitment to joint working in areas where the North East can lead the national recovery, specifically low carbon energy; and flexibility within national programmes to allow for maximum leverage of local and national resources.

It is envisioned that this would keep people in jobs and training, support businesses and sectors to restart and recover, and support the transition of our communities and places as they adapt to living with COVID-19.

In the long-term, the deal sets out how our future economy can be built by maximising the potential of our existing assets and exploring new opportunities and by investing in digital and transport connectivity.

Opportunities identified in the document include a series of new projects to empower our rural and coastal areas and reinvigorate our town and city centres; achieving zero carbon emissions targets; utilising new digital construction and advanced manufacturing techniques; leading the national offshore wind revolution; and delivering the first digitally-connected Freeport for the UK.

The proposals give particular focus to jobs in the key areas of data ageing, low carbon, life sciences and pharma. This will help the transition to a stronger, higher-productivity and higher-wage economy, with people primed to adapt to challenges and new opportunities.

Lucy Winskell, Chair of the North East LEP, said: “The Recovery and Renewal Deal for the North East is an ambitious proposal that is designed to create a fair playing field for everyone.

“Through our Strategic Economic Plan, it was our goal to create 100,000 new and better jobs and we were doing well – with 68,000 more jobs in March 2020. But the impact of COVID-19 will reset that, which is why our Recovery and Renewal Deal is so important.

“We have presented a proposal that puts sustainability and decarbonisation at the core. The Recovery and Renewal Deal ensures communities continue to improve and provide a strong offer for people to live, work, study and visit.”

Sarah Glendinning, Regional Director for the CBI North East, said: “Now more than ever we need to be imaginative in our thinking, brave in our approach and robust in our delivery in order to recover and thrive.

“In the Recovery and Renewal Deal for the North East, we have suggested the way to a new North East. Now is the time to come together to think bigger, greener, more inclusively and with innovation to reimagine our economy.”

Mayor Jamie Driscoll, North of Tyne Combined Authority said: “The pandemic has hit people hard. Young people need jobs. Businesses need investment. Yet we have the potential to be world leaders in offshore energy, advanced manufacturing, and sustainable transport.

“Our Recovery and Renewal deal will create 100,000 well paid jobs. It supports more affordable homes and better health. It’s what our region needs, and I want central government to back our plan and back the North East.”

Councillor Iain Malcolm, Chair, North East Combined Authority, said: “It is vital that we have a strong plan in place to help our businesses and communities to recover from this unprecedented crisis.

“The Recovery and Renewal Deal for the North East builds on the work we are already doing with government and other partners nationally and regionally to unlock all available support and financial assistance and sets out a bold vision for future prosperity.”

A dedicated North East COVID-19 Response Group web page has been launched for those looking for more information and partners wanting to engage with its work.

North East businesses can also access the North East Growth Hub, where a COVID-19 (coronavirus) toolkit provides the most up to date support and advice, including partner information.

Read the Recovery and Renewal Deal for the North East here.